Yes, they are both reasonable DAC's, with the Squeezebox2 having the better of the two by quite a margin as they seem to have spent quite a lot upgrading the internal components (noticeable when the plain box arrives with a black and white manual!!) I use an external DAC with mine, but that is just because I already had one. It improved the sound of the Roku, but I wouldn't be suprised if the notice was less noticeable in the Squeezebox Andrew