DAC upgrade assistance needed

The main limitation with the DL III for computer audio is the USB input. I would consider buying a quality USB to SPDIF converter first. I use a Audiophilleo 2 which is very good for the $$$. Sometimes come up used here, which is how I purchased mine. With a converter one can buy a older used DAC as an upgrade later. I use mine with a Bryston BDA-1 which I also bought used.

Agree with Coltrane1... if using a USB on your computer, a good converter with your PS Audio will be better than a more expensive dac with a lesser USB converter built in.

You owe it to yourself a new USB DAC--either the PS Audio NuWave or the W4S DAC-2. I wouldn't spend money on an expensive USB/SPDIF converter considering the improvements made in USB DACs over the past 4-5 years. Even the Resonessence Concero ($600) is an option today if you don't plan on playing DSD files.

Without knowing about your existing system, let me expand on my 1st response. I play Redbook CDs as AIFF via MAC mini using Pure Music. I owned a DL III with the M2Tech Hiface. Felt it to offer great sound for the $700 I had invested. I upgraded to a Bryston BDA-1 because I wanted more digital inputs. I then upgraded to the Audiophilleo. Both together cost $1600 used.

I feel the Audiophilleo would have been a good upgrade used with the DL III. My total cost then would have been $1100.

Outside the USB interface I question whether the PS Nuwave is that much better DAC than the DL III. Though I have not heard it, based on reports by others here and elsewhere, I believe the W4S II to be a truer upgrade at a cost of ~$1150 given a used DL III now sells for ~$350.

I would suggest you look for a used music fidelity V-link (24/96) or M2tech Hiface (24/192) and try it with your DL III. Cost would be less than $100. The PS DL III has a robust power supply and great analog output stage for a DAC selling for $800 3 years ago.