Well it’s been awhile but after Axpona and such I just want to comment about several things around the DAC(s).
First, congratulations to PS Audio on a great show and hugely interesting product introductions
Nice work guys.
Next, just going to say what I feel basically, mostly from my own experience and efforts. As always JMO and YMMV.
Yes, as hinted to in the Mk1 mods thread the DS Mk2 is also quite good with the transformers removed and caps substituted. The Mk2 processing is sonically improved IMO and has a bit more meat on the bone in the sound vs the Mk1. I’m serious when I say the music has been unleashed with the trafo replacement.
Some of you may recall I spent a lot of time and effort taking a DS Mk1 as far as it could go basically, including replacing the entire LPF/output stage with what I call “ultra analog” along with DC coupling. That’s a lot of work to engineer all that in there
BUT it was a huge improvement. My high end buddy (in the Berkely area now) still has that “studio” DAC.
Lately though he also has a ~ $120K retail MSB DAC, and is at their factory today in CA in fact for some checking and updating of the unit. To move to this DAC he let the complete Ideon digital stack go (before I could hear it, boo).
But the Mk2 with caps, it’s not hard to do really. And the only reason it even needs those in the output is we have to block DC. As we’ve said before, no cap is as good sonically as no actual cap (ie DC coupled). But IME caps are generally more transparent than trafos and we can get very close to “no cap” with some care in what we put in.
I have 2 pair of V-Cap ODAM in it currently ( V-Cap ODAM 400VDC 5.6 uf). About the largest value that made sense to try and fit physically in there.
BTW if anyone does likewise in their DS Mk2 (and they should IMO and IME
Please say hello to Chris V and tell them TK in TX sent them 
Oh and almost forgot, I also have 2 pr of VCAP 0.01uF CuTf caps as bypass in there too. Call it the max effort; go right or go home. Don’t use a different value bypass, use 10nF.
To clarify, that’s 4 caps total (plus 4 bypass caps) for balanced output.
There is some room because we’re replacing large trafos after all, but not as much real room as one might think. For example, reasonable value high end Mundorf are generally too large dia to fit under the board above it. Assess the fit carefully ahead of any potential candidate.
What I mean by reasonable value is, about as large a uF value as we can fit basically. The distortion, especially down in low freq is reduced as the cap value goes up. In fact that can even be measured these days with the ultra high res AP systems. Doug Self published a nice graph or three in his amplifier book(s) showing the effect clearly. I’ll see if I can find some of that online and insert it here.
In my mind the effect is mostly due to Xc (capacitive reactance) vs freq; as freq goes down, Xc goes up. To “short out” the capacitor sound imprint we need Xc to be as close to 0 as we can across the freq band. Ie, a component can’t affect the sound much if it is paralleled with a short circuit..
In other words, a 1uF might “serve” the task in a simple freq response analysis sense, but we’d prefer to have something like at least 4u7 IMO. Bigger would be better.
Also, with film caps there are no leakage concerns that go along with the larger values; film caps ~ don’t leak but others do and it causes real, practical issues.
But I also have a cap I might ultimately prefer; it’s what i started with before trying these other film caps. It’s a different, unique technology but has some real advantages, ~ very high CV with small size, but also ~ no leakage concern even with quite large values. I really loved how it sounded too; very out of the way with little sonic imprint. I’ll put them back after I’m sure I “know” the ODAM sound well enough and we’ll see which one ultimately stays.
Regarding the new DAC announcement at Axpona. I think this may make Mk2 owners envious, but after some thinking I just wanted to say a few things. Of course I haven’t heard the new DAC yet, and I’m sure it is quite good either way.
BUT- going by what we know so far, the new DAC has a different approach. It converts PCM input to DSD; then hands off to new piece (the SpectraWave 64-Tap Sequencer) that is said to be like a ladder DAC and/or a filter, some shift registers, I dunno. Then the whole thing gets passed to the ouptut stage, and I think they paid a lot of attention to that (as they should). And it’s DC coupled, I think they said (good).
But to make the point, let’s compare to what’s happening in the DS Mk1 and Mk2. In these, incoming PCM is converted to DSD, then that is handed directly to an active output LPF/buffer/gain stage. There’s no intermediate “DAC” stage between the DSD and the output LPF.
And IMO, there’s doesn’t need to be either. In fact, as I’ve said one could literally take the DSD stream and feed it into the preamp and there would be music; no “DAC” per se. To me that is the majority of the huge appeal of DSD, because I know we can make an active output LPF, DC coupled no less that has very, very low sonic imprint on the music. Very low imprint, I don’t call it “ultra analog” for nothin’ 
-Maybe meanwhile PS Audio design can educate us as to the need for the intermediate stage. I’m all ears 
But hopefully this may help keep some Mk2 owners from feeling like they are suddenly obsolete and out of the hunt. IMO you’re not. And until (possibly) educated otherwise I would suggest it is even still the preferred topology, until proven otherwise. A very pure, direct conversion process chain (good IMO) with the best fw processing the designer could muster all things considered. After all, the actual DSD d/a conversion occurs in that PCM-> DSD fw process. The rest of the hdw then simply strips away (and buffers the music portion with some gain) the unwanted DSD high freq portions.
I hope this maybe helps some,
Thanks, TK
The DS Mk1 “Studio” playing a few days ago in DW’s current super system:
A representative graph of rising capacitor distortion with falling freq from Doug Self’s amplifier deign book. Audio Power Amplifier Design Handbook, 4th ed.
It can really massacre it at low freq; thus the need for larger than “usual” values to mitigate it.