This piece seems to have a large cult following, check the digital forum at Audio Asylum, there must be hundreds of threads about this unit, some of them probably addressing your question on the ADC aspect. Reminds me of the buzz about the Radio Shack Optimus 3400 portable CD player a number of years back. I've heard it, and it's very good for the price, definitely a bargain, but not the giant-killer some make it out to be, in my view.
