Considering purchasing this DAC but noticed this issue from Purrin's DAC review thread at head-fi. Does anyone know if this is still an issue with the new mk2 units?

Also, from following the official PS Audio forums seems like quite a few people having issues with firmware versions, pop/click noises.... not very good for an expensive DAC ><

Yes some are experiencing clicks and ticks etc.  I notice very small pops and clicks upon occasion.
And also they are still learning how to optimize the f/w and s/w builds to 'dial in' the operational aspects as well as sound quality.  It is better now, in most regards, but there still are idiosyncrasies.

But after saying all of that, using the bridge can be a marked improvement over using the usb.  And if your system is suitably resolving these differences aren't slight.  And also using the I2S inputs can yield significant sonic improvements as well.

But the ability to send the audio data stream over Ethernet is still in its infancy, which means its rough around the edges and can be problematic.

IOW if your looking for trouble free operation with minimal hassles, this DAC is not the best choice.  But if you are looking for exceptional sound quality at a lower price point and are willing to put up with 'troublesome' behavior (with work arounds) then this DAC can deliver a wonderful audio experience.

JJ

Has anybody tried Channel Island's Transient MKII Converter with the I2S connection on the PWDII? Not cheap at $700, but certainly much less expensive than the Offramp.

^Thanks for pointing out the Channel Islands, cool that there is a cheaper one with I2S out there.


I'm going to list some pluses and minuses since some are considering this DAC:
+ PS Audio has acknowledged that FW versions sound different, there is a support page now with easy access to files that will force load.
+ With original SD cards (2GB and smaller) formatted by a PC to FAT16 (my Mac didn't do it properly), you can load multiple cards for easy switching.
-  There is some continual Beta testing going on even with released versions. (The formal and ad-hoc testing plus beta doesn't catch lots of stuff.)
-  Pure Mk. II. cannot roll back past version 2.2.0.
+ I love that I can roll versions of FW and that they keep working on FW that works on a unit released years ago (Mk. I).  That's a long support period.
+/-  The increased dynamics, low end amount/punch, and imaging on the the newer firmware plays less nice in treble and natural tone/timbre than 2.0.2.
(may not be an issue with other phones, I will try Anax's HD800 on my system at the meet to see if I should update my mods)
+ Depending upon tubes, phones, priorities at the time- nice to have FW options.
+ The DAC scales with Off-Ramp 5 and I2S
-  Off-Ramp 5 costs money, yo.

For the upcoming meet, I'll bring 3 SD cards with 2.0.2, 2.2.0, 2.4.3.  I plan on using 2.0.2 with PX-4 tubes for best midrange tone and natural voicing.  The newer firmware are a bit more fun with impact and amount at the ends which impress me more with imaging though.  Maybe at the mini-meet the night before, I'll take a vote and also post some of the feedback here.  I think it will depend on your system and preferences, I have HD800 I am working with.


I'm still happy with the purchase.

^Thank you for listing all of that...it's hard to describe and I concur with your findings. 
2.4.1 for me had a strange "artificial" edge to it (well-put, was almost like a strange echo that was sharp/quick). Was immediately apparent and I stopped using it right away.  PS Audio actually pulled this back from official release due to other issues I believe, so I don't usually mention it. Not sure if that one is available on their site again. 
2.4.3 is a little edgy in the treble for me but probably a function of my HD800 FR/ringing still.  At higher volumes and with problem test tracks it is more of an issue.  I was having fun with EML 300B Solid Plates in my BA plus 2.4.3 until I turned it up and started scrutinizing ahead of the meet so I could figure out which set-up to use. 

I too use the HD-800's
Have you tried the inserts? 
http://www.innerfidelity.com/content/diy-modification-sennheiser-hd-800-anaxilus-mod
They are an inexpensive way of reducing the upper end 'exaggeration' or listener fatigue, in these cans.

JJ