For both music and movies, I've been very happy with the sound quality of my stereo setup. My sources are a PS3 and mostly Apple Lossless files from both iTunes and foobar2000.

Creek 5350SE Integrated Amplifier
Stello DA220 MKI DAC
Paradigm Studio 100 Mains
AV123 MFW 15 Subwoofer

You can't fix a broken world

First of all, I doubt there's a port on these. That's going to cost you in terms of absolute output, and possibly depth as well. I was looking at Epik, eD, SVS and Paradigm (to match my Studio 100s), but eventually went with an MFW-15 from AV123. I've been very happy with it so far. I don't think you need to spend 'Paradigm' kind of money to get quality low-frequency reproduction. I run a 2.1 setup with a Stello DAC and Creek integrated amp. The quality and depth are phenomenal, especially since the addition of the Stello DAC. I had been using a Xitel HiFi Link USB audio device beforehand, and the difference became apparent when I played some Bass 305/Bach organ music using just the Paradigms. I agree strongly that you can't compare 'professional' sound to home hifi equipment, much less appeal to one as the objective standard. I know that I can hear well in to the 20-30 Hz realm, and I enjoy feeling effects below that. You can use a program like Tonegen or Audacity to test your own hearing by generating sine waves, be careful though. To reproduce a given sound pressure level, a driver must travel increasingly far for decreases in frequency below 60 Hz or so.

That said, with all this digital music, if you're looking for an increase in fidelity, one of the best places to find it is in ripping your legitimately purchased CDs to a lossless format.

My Xbox 360 is connected to a Sharp 42" Aquos TV via HDMI, and the optical digital output from the TV goes to a Stello DA-220 stereo DAC (I am a stereophile). The Xbox is set to output stereo audio, which it does during gameplay, but I get no sound while in NXE.

The PS3 on the other hand (also connected to TV by HDMI), sends no sound to the DAC unless it's playing a Blu-Ray. (Yes it's set to ouput PCM 44.1 and 44.8 stereo.)

However, the TV will always play sound from either source, so I know it's getting to the TV. I think this is an HDCP/firmware issue with the TV, but I doubt there are many others using their TV as a stereo audio switcher for a hifi DAC.

Thank you for your CES coverage!

This product helps fill the gap in quality-DACs priced up to around $1,000. Cambridge Audio also recently announced a product in this category, the DAC Magic. I had been using a Xitel HIFI Link USB audio device until I found a good used Stello DA-220.

The S/PDIF header feeds this device with a bitstream, which is converted to an analog signal within the DAC. All digital devices that output an analog signal have a DAC, but they're usually very cheap and it seems difficult for manufacturers to translate what makes a good DAC in to sales speak. It's much more than just a chip.