Yes my source is CD (Not MP3). Thats an interesting finding. I use CD so it sounds like I'm stuck with crummy sound unless I can bypass the internal DAC, hopefully with an external which would have its own preamps. I also though that if an external DAC did work I could put the DAC in the trunk with the amps and then would only need 2 foot long interconnects as opposed to 20 foot runs. That should help on quality too.
Does anyone have this thing playing FLAC files?