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RE: "A soundcard puts the DAC inside the computer" - only if you choose to do so.

I^2S is a lot better than S/PDIF. But sending a clock down a long cable is going to add jitter. You have to have perfect transmitters and receivers, the cable has to have perfect impedance, the connectors need to be perfect. It's much better to put the clock 1" away from the DAC chip and send the signal over on a controlled-impedance trace.

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