Yes, Almarg covered the most important points - noise and timing errors are the enemy. Bits may be bits, but in computer applications we never try to convert the bits to analog and listen to them. That is why noise riding on the digital signal and small timing drift (jitter) matters.
IMO if you are going to mess around with Ethernet cables you want to try for a "noisy" eithernet and a "clean" ethernet. I use a gigafoil to accomplish this. Its commodity ethernet cable into the gigafoil and expensive (Audioquest diamond) from the gigafoil to the dac. There is a big thread on this over at audioshark. People also do this with so called audiophile network switches. Same basic idea.
The other thing people are doing is using fiber instead of ethernet since noise can't be conducted in the same was as it can with wired ethernet.
IMO if you are going to mess around with Ethernet cables you want to try for a "noisy" eithernet and a "clean" ethernet. I use a gigafoil to accomplish this. Its commodity ethernet cable into the gigafoil and expensive (Audioquest diamond) from the gigafoil to the dac. There is a big thread on this over at audioshark. People also do this with so called audiophile network switches. Same basic idea.
The other thing people are doing is using fiber instead of ethernet since noise can't be conducted in the same was as it can with wired ethernet.