The DSP, I believe does an A/D conversion of the preamp out, does its DSP thing and then does a D/A conversion back for the power amps. I haven't heard the speakers, but wonder why the A/D D/A doesn't happen before the preamp or why it doesn't just take (can't just take) the digital output of a dac and do the manipulation there. Of course,that last scenario precludes analogue input. All in all, I am certainly intrigued by the speakers but I just don't understand--at least in the two reviews Ive read of them--the double conversion is talked up more as a really significant possible source of sound degradation--especially since the Behringer device they use sells for less that $500. If the chips in the device are good enough to preserve subtlities of preamp differences, then I would think they would be good enough to wipe out the need for any dac more expensive than it ( or the Behringer 24/96 without the xover functions)--and that would include the benchmark dac which is perceived as great and cheap. I understand that my response does nothing to answer your questions. I would be interested in how you tought these speakers sound. Thanks.