I say you should update. When I updated to 2.3.3, FPGA 178, I got the DSD 256 to work on the USB input and I felt the sound quality was better also, but that could be partly the breaking in process. Anyway there were no harm done with this upgrade, only benefits.
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Just dropped my unit off at FedEx for some much needed TLC at PSA. Once I get it back I’ll run through all the different configurations to see if it’s good to go or if I can break something else 
I have resolved the drop out issue when using JRiver Media Center 29 via usb to the mk2 DAC. There are two settings that need action to correct for this. Under Audio go to Volume turn off Volume protection. Move down to Alternate Mode Settings and select Use these alternate settings. I have been playin music all day some DSD single and quad rate as well as PCM albums without any dropouts!
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Fantastic! Persistence pays off.
I feel like we need to start a FAQ for the various software settings. Otherwise we are going to drown in the same questions over and over when the MKII is released to the public.
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James pinged me today that my unit is in the queue and should be on the test bench in a few days. Hopefully they can figure out the problem and fix it without too much trouble.
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I’ve had my MkII for a little over a week now. I left it running for several hours the day after I received it, and several more hours on it since. It is indeed an improvement over the MkI.
I have noticed a greater since of front to back and side to side extension of the soundstage on well recorded music. I am also noticing an increase in the transparency, and resolution from especially the Octave Record recordings that I hadn’t noticed before in the MkI. I am excited to see where Ted will go as far as extending the boundary’s of this already excellent DAC.
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I sent my unit back too, but it was the DS. The MK2 is staying for sure.
MK2 is a beautiful yet sensitive marvel, and I found SQ changes can be found easily from cable, fuse, and tweaking. I am not sure that is a good thing though. 
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I just found out that the MKII is really sensitive to power cord changes as well as other minor tweaks. I replaced the NBS power cable I usually use on the DAC with a SR Galileo UEF power cord and the images shows even better textures, air and separation and presence, in other words sounds even more real! I’ll listen some more, but really like the improvement from this power cord on the MKII.
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Power cables can indeed make the MKII open up! The Galileo made the images pop out with even more realism and the drums have more dynamic impact! Wow, this MKII truly one hell of a DAC! With power cords, it’s much more of a difference than the other tweaks in my system.
I might try swapping the one on my preamp with one onthe DaC. My other cord like it needs plug replaced. Everything is popping out juust the mids an emotion behind the voice is recessed. Bas and highs are spectacular as is jazz or symphonic instruments. I’ll listen a bit to key songs then swap.
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A warning about that Advanced mode setting. Even though you save it and say ok, if you shut down JRiver and open it up again that setting is not selected. It stinks that we have to remember to check it every time se start up JRiver but if you don’t want the drop out issue this is what we must do. I found this out when I checked it after I had shut it down just now.
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I wonder what would happen if you wrote JRiver and suggested a feature change.
I went on their site but did not see a way to contact a human. They direct everyone to their forum. I will look a bit more to see if I can get an email to them.
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jimh@jriver dot com
Jim Hillegass
I Just received my MKII back from PSA, which took about 18 days turnaround including shipping, and it is sounding fabulous. The original problem I was having, which was resolution drops over USB, seems to have been fixed. I’m not sure exactly what all the repair involved, but I was told that the digital input board was replaced. It also came loaded with the most recent beta firmware. So hopefully smooth sailing from here.
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Thank you. I will get in touch with him
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I’m a little confused as to which size fuse the MKII is supposed to be running. I’ve read advise that replacement fuses should be 250V-1AH, which is what the back panel on the MKII says it’s rated for, but then when I removed the fuse from the back of my unit it is clearly marked 250V-500mAH. So am I missing something, which could very well be possible, or does it not matter which of the two sizes are used. Is one size more optimal? Is the 250V-1AH SR Purple that I used in my DSJ ok for use in the MKII?
The usa fuse is 1 amp slow blo. The 240 volt would use the 500ma. The fuse in my mk2 2 is a 1 amp.
Well I live in CA, so someone must have put the wrong fuse in my unit because it clearly says 500mAH.
They messed up at the factory. Clearly that’s the wrong fuse for units sold in the US, it can blow prematurely. The correct fuse for the US model MKII is Slow blow 250v small 5 x 20mm 1A.