D/A converter built into amp.

Separate components versus 'integrated' solutions can be wonderful and there is always a compromise.

The big compromise is capability and features versus cost.

Could a stand alone DAC fix it - possibly.  What is the cost you are willing to spend?  And then do you want to also explore a separate streaming and DAC option?

Why aren't you using USB or Ethernet inputs??

I have the Bel Canto one streamer which does not have USB input except for files.   It is Ethernet connected. The optical cable goes from the streamer to the amp. The streamer cost $1700 so I would consider anything under $3000 as appropriate.

At least try the SPDIF Coax connection before moving on to outboard DACs, which are a bottomless pit of options.

Thanks, Twoleftears in a huge way.  The SPDIF Coax sounds waaay better than the optical connect.  You never know, you know?

does it sound as "good" as the Mohican now? I had the Mohican and thought it was excellent...

Well, it is very close, but not exactly the same.  They tell me that the Mohican's D/A converter is optimized for 16/44 Redbook CD's and the H360's DAC is not.  I am thinking that is the difference.

As I understand it the Mohican is a very nice player.  Not heard it however. One advantage when using it is there is no shared electronics between DAC and amplification. Keeping the digital domain separate from amplification is one advantage to a separate DAC. Another advantage is the opportunity to select a DAC towards getting the best from the digital sources connected to it.