DAC hook up help

Yes, If only one source is turned on, you CAN leave both inputs hooked up. The DAC will automatically 'find' the working source and decode that data stream.
If BOTH sources are turned on, your DAC will either default to one, OR, just stay with the last one it was decoding (because it will not need to check the other.. depends on the internal logic)

I am thinking Elizabeth is correct. For the price of the unit, it should to have automatic switching.

In my secondary family room system ,I use an older Stax Talent Dac .It has Optical and Coaxial digital inputs,Both inputs are used ,one on my Apple TV and the second on the Wadia 170i,there is a toggle switch on the Stax dac that switches between the two inputs so I can use one or the other but not both at the same time.I am sceptical about the auto switching and believe it will create conflict I much rather manual.
Regards
George