The audio repeater simply does what it says: it repeats the audio by accepting an input stream and sending it on its way again. It sounds elaborate but it is done this way so that you can have multiple instances of the repeater, sending the stream to various devices and even create loops. But for our use it is enough to simply select the input, which should be the virtual cable we created earlier and the output, which should be the soundcard of your choice. You may need to tinker with the buffer and parts in order to get a stutter-free signal and bring under/overflow to zero. Then, you will notice that your soundcard picks up the signal directly from the virtual cable. And it sounds so much tighter and more dynamic than it did when iTunes was playing standalone! Out went the Windows kmixer, and all that still stands in the way of perfection are the filters buried in Quicktime. But fear not, they are quite transparant. Not entirely, but the effect is negligible. But bypassing the kmixer and ancillaries makes for such a drastic improvement that I doubt that you'll still want more. After all, I'm not looking for absolute bit perfection but musicality. And musical, iTunes is. Just as long as you use Virtual Cable!
You will only need to specify the virtual cable once but you will need to open and start the repeater every time you boot. There is a way around this though, by adding it to the startup items and adding /Autostart to the infobox of the shortcut so that it starts up after booting your system. For this and further info, I refer back to the included manual.
Update 24-11-2010
Virtual Cable appears not to be entirely stable. No matter what settings I make to the control panel or audiorepeaters (buffer size/parts/Ms per interrupt), I still get tiny sampling errors every now and then. If I play music the entire day through a Virtual Cable straight to my soundcard, I will typically hear an effect one or two instances that can only be described as a faulty/dusty volume control or momentary wear on an analogue tape. This effect lasts shorter than a second but it is clear that the sampling is off at these moments and then catches on again. So even though the effect of Virtual Cable cannot be underestimated (it makes a fine player out of otherwise crappy sounding iTunes) this is something to be aware of. Reading through the documentation provided by Virtual Cable it is indeed mentioned that the stream is reliable but doesn't remain locked forever. But this mostly applies for secondary instances of the Audio Repeater where, for instance, you send a signal from iTunes to your main soundcard but simultaneously also to another soundcard. When you send two Virtual Cables from iTunes at the same time this problem exacerbates and results in a corrupted stream that doesn't lock in again after a second. Looping the signal (from iTunes to soundcard A and from there to soundcard B by means of two instances of the Audio Repeater) does work fairly well but still has the incidental problem described above.
All this makes me look out to another app and the first choice at the moment is still good old Winamp 2.9. But since it doesn't play FLAC nor supports remote control via wifi and also looks dated, I will again look at the current Winamp 5. I know that there are alternatives like Mediamonkey, Media Library and Foobar but I am not entirely happy with any of these apps. Please keep an eye on this site as the quest for the perfect playback app will continue!
Conclusion:
iTunes sounds underwhelming in its basic form and there aren't enough settings that can be made. What are the options?
1. Use Virtual Cable and accept the slightly lower user friendlyness and occasional 1-second sampling error.
2. Buy a MAC.
3. Hope that a future version of QT provides a ASIO/WDM plug-in or at least the option to select your soundcard directly.
4. Don't just hope, but join me in harrassing Apple about this via the "provide feedback link in the application.
Some things I haven't investigated yet:
-There is a program that lets itunes control foobar so you would get bit-perfect sound but with the itunes interface. (apparently buggy)
-Using FLUKE to play FLAC in iTunes (reportedly very buggy)
-Converting FLAC into Apple lossless or WAV/AIFF (I fear that there will be significant quality loss but will investigate)
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