Joe, I really don't think it's your dac. In my system, imaging is amazing. Speakers seem to disappear. Can you try running a coax digital signal from your digital source to the dac? I'm not at all familiar with the PS3, but I think an HDMI feed is more appropriate for home theater than for two channel music, but then, I may be living in the past. Let me know what you find out, ok?
Thanks, and good luck,
Dan
Thanks, and good luck,
Dan