DSD files - especially music recorded direct to DSD like:
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To me, DSD has a greater depth to it and an overall smoothness and more analog sound than red book rips or even high res PCM files. As to a DSD file compared to the same file converted to PCM? Well....I need to do more testing and especially with different conversion options (Korg Audiogate, JRiver, etc.)
But if you want to do pure, native DSD - then you will need a compatible DSD DAC. I've been pleased with my Marantz NA11S1 and John Atkinson (Stereophile) will be reviewing it for the September issue. The DCS Paganini is one I have my eye on as well.
That being said - there are a lot of great DSD DACS out there. A real favorite among our Tampa audiophile society members is the Meitner MA-1. I heard it this weekend and was very impressed.
The Mytek is a great lower budget DSD DAC. The Auralic DAC is another. Lots!