Tested Technology explains Hi-Res audio with some help from the Optoma NuForce uDAC5 pocket-sized DAC:

“The µDAC5 is clad in a solid stainless steel case to give it excellent electromagnetic isolation.”

“µDAC5 also handles what some manufacturers claim to be the highest end of high end audio, a recorded sound format called Direct Stream Digital, or DSD for short.”

“Bottom line: the combination of JRiver’s Media Center and the µDAC5 was able to play everything I was able to bung at it with minimal loss of quality.”