All compression seems to achieve it's results in a way that compromises both ends of the sound spectrum. Its a touch of the 'Well they can't hear it so don't include it',which may be fine on an MP3 player with relatively low cost headphones. When you try to play it back on anything much better then you are exposing it's weaknesses. This is even more noticable in classical music where sustained notes are prone to 'warble' with compression and some of the subtle harmonics are missing. Try copying a few of your favourite albums as wav files, ie. no compression. You should immediately notice an improvement in playback. Limitation with this method is that you need much more hard drive space. There are alternatives to mp3 and wma that use lossless compression but even these will give much bigger files than you are currently getting. click here Have a look at this, it may help solve your problem. I don't think that Dolby or Dacmagic are going to be the best answers at the moment as it is always the same with Hi Fi, get the front end right first, ie the signal you are feeding the system.