Given the amount of different systems, OS, and sources I've tried with the same result, Arthur of Vinshine is offering a warranty replacement. Hopefully they find the problem in that unit and prevent it from appearing again. I think we've tried everything reasonable to have this specific USB input work with a computer source and preferred players of different users. The optical input also has occasional distortion, appearing much less frequently but still consistently present.
In the mean time I did lend it to a friend with a Holo Spring Level 3, who has been extremely impressed. He also listens mostly to electronic and rap and wasn't as interested in instrumental layering as a feature, which relates to what I write below. We held another listening session Saturday in which the Ares was compared to a Bifrost multibit, its most direct competitor in price, and an MHDT Labs Stockholm V2, which is a bit more expensive at around $1000 and could be of interest to those to whom R-2R and Non-oversampling are appealing.
Initially using the USB and optical outputs directly from a Macbook, the Ares and the Bimby traded advantages, with the end preference being hard to say given the mixed qualities each excelled at. However, once we put a Singxer SU-1 into the line as an equalizer and used coaxial output into both DACs, it took all of five seconds to prefer the Ares in every respect, which was an impression I was no alone in. So: optical input not recommended, and if you want to spend $600 on a DAC you are more likely to be happy with the Ares. The primary thing was that the Bimby sounded more artificial overall and exaggerated in areas such as bass, whereas the Ares sounded controlled, natural, and accurate.
The one area that still leaves me unsatisfied with the Ares is layering and the creation of a realistic sense of space for performers, which is mainly applicable in the type of music I often listen to on my home system: jazz of many types, voice without distortion; things with instruments being recorded in relationship to other instruments. In more studio-based recordings, like rap and electronic, which I also listen to, the Ares is a very strong performer which gives bass impact and does not make certain effects sound like distortions, as the Bimby seemed to. It seems to be a classic either/or in DACs below a certain level (and in turn, price range). The MHDT Stockholm V2 was my preference for anything with instrumental layering, but was edged out by the Ares when I put on things with strong electronic bass lines and more processing. In the end, I would choose the Stockholm V2 because getting that sense of real space is very important to the enjoyment of my listening at home, on speakers, where I'm likely to sit and only pay attention to the music that's on, and most of the electronic, etc. music I listen to in while mobile and with headphones, where volume in an apartment isn't a consideration.
I suppose the next things to do would be an Ares vs. a Gumby and bring the Pontus into the mix vs. the $2000+ crowd.