On the Link itself. Amir didn't test the analog input. So there was no "volume" factor on the input. All this talk of distortion above a certain volume is when using the built in volume control for the ANALOG OUTPUT of the Link, when using the digital input on the Link.
Easy way to test: Turn down the volume on the Link and see if that solves the issue you are hearing.....
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Heck, the digital output might be even better, but that wasn't tested, either. Presumably, unless there is some math problem, the digital output will be very nice, with the ARC processing in tact. Could be a pure digital way to add ARC to any system where the digital transport and the DAC are in separate devices, connected by an optical cable.