Speaker sound encoded. Setup Turntable: Denon DP-62L Cartridge: Denon 103r re-tipped to microline stylus Phono preamp: Parks Audio Puffin Power amp: Wyred4Sound ST500 Speaker: Totem Forest DAC: Wyred4Sound DAC2 Vinyl noise remover: SugarCube SC2 mini Digital music server: Sony VAIO laptop