Disclaimer: MANUFACTURER
Jayb77,
At the risk of hijacking your thread, I wanted to add my two cents. We manufacture the Blue Smoke Entertainment Systems Black Box Custom Audiophile PC, so this a topic near and dear to my heart and wallet.
The Black Box is a silent/fanless, heat-piped Windows7 custom PC. It runs ultra low wattage and contains proprietary software and hardware to optimize integration and sonic performance. On the hardware end, we evaluated many well respected soundcards and a number of USB options. Because we couldn't find an available solution to meet our performance goals, we ultimately spent over one year and considerable dollars to have a proprietary DSP-based soundcard built to our specs. Digital output includes AES/EBU, S/PDIF via BNC, Toslink, and an I2S interface dedicated to the MSB proprietary network (input and output). This I2S interface output takes our already ultra-low jitter via traditional outputs (measured in trillionths of a second) to vanishingly low levels. Our custom soundcard also includes the industry's only hardware-based upsampler. Many algorithms were evaluated before deciding on the one to be included with our system. Should this be improved upon, it will be made available for evaluation/purchase to Black Box owners. We also include a software-based, curve-fit upsampler, in addition to native bit-perfect output through 24 bit/192kHz.
When Robert Harley visited Rockport Technologies in Maine, he proclaimed the Arrakis-based system to be the best stereo he'd ever heard. The digital source provided was our Black Box Server via the I2S interface into a MSB DAC-III Signature Edition. The analog source was the Rockport Sirius III TT.
http://www.avguide.com/blog/the-best-stereo-system-ive-ever-heard
So, to finally address you question, we have discovered that choices of hardware, OS/software, codecs, digital interfaces, etc., will dramatically affect sonic performance. We have built and evaluated many PC-based and Mac-based systems and components in our highly treated listening room driving Rockport speakers, and found sonic differences to be commensurate with comparing phono cartridges, turntables, CD players, or any other source component. Although there are more affordable pre-manufactured and DIY approaches to server-based sources, we have made a number of design choices that make the Black Box a uniquely "audiophile" digital source.
In case you or others plan to attend CES, the Black Box will be demonstrated through BAlabo electronics, Tidal Speakers and Argento cables on the 35th floor of the Venetian Hotel. BAlabo USA has quite a bit of experience with server-based sources and I'm confident they'd be willing to share their reasons for chosing the Black Box to drive their BD-1 DAC at CES for the second year in a row. We are confident that they will yet again distinguish themselves as one of the best of show. We are also pretty confident that our contribution will be the most affordable!
Thanks for reading.