I've decided to go for the Teac UD-H01 (via USB from laptop) as part of my first seperates system. However, on reading the manual online (ultra-keen), I came across something slightly disturbing on page 9:
"The input indicator blinks when the input signal is not digital audio data or the format of the audio signal is not compatible with this unit such as AAC. If this happens, set the digital OUT setting of the connected device to PCM audio output".
1) Since most of my music is iTunes AAC, does this present a problem in terms of audio quality?
2) And, if applicable, how can I make W7 output PCM audio?
I have done some research, but can't find a satisfactory explanation or solution. Bit perfect audio is always a nice aspiration...