[quote]Why is it "nice" to start with a balanced signal?[/quote] Because one can... Quite a few DAC chips are intrinsically balanced, they produce a plus and minus output simultaneously. This helps to reduce the error. My DAC works this way, and to get a single ended output the balanced outputs have to be added together. So another opamp is involved. [quote]How will I connect a computer to the Naim DAC?[/quote] Connect a computer directly with something like an M-Audio Transit, [URL]http://www.dolphinmusic.co.uk/product/3012-m-audio-transit-usb-hi-resolution-mobile-audio-interface-.html[/URL] or use an indirect solution like a Squeezebox. I'd recommend the latter, the only constraint is that it cannot drive a DAC at more than 48kHz, so you won't get the full benefit of any hi-res audio Gilad provides you with. The Naim DAC will drop right into your setup and probably won't cost you very much, especially if you sell the CDS2/XPS. You'll need a new auxiliary PS for the DAC for cosmetic reasons, it will only improve the sound when you know what you're listening to. Paul