I had recently built a Buffalo III and Legato 3.1 I/V stage as my first standalone DAC. The Legato's SE output is now connected to a Rotel RSX-1067 receiver with B&W 683 speakers. Before the Buffalo, my M2Tech HiFace Evo's SPDIF coax output is connected directly to the receiver, making use of the built-in AK4396 DAC function. Now, I connect the Hiface's I2S interface to the buffalo.

After a few listening tests, I get the impression that the Buffalo & Legato combination reproduces a sound that is not as open (brighter ambient?) as my receiver only setup. I was quite perplex by this discovery, is it possible that I may have messed up on some key configuration parameters? As I said, this is my first external DAC, so I had little to no prior experience to compare against.

I have attached an image that shows my Buffalo&Legato and its connectivity to the receiver, please point out if I've made some obvious newbie mistakes. Thanks!

Also you will want to be sure the jumpers on the bottom of the BIII are set correctly.