I'm not sure if my English is good enough to reply again, but I will try. I tested my set up and it is bitperfect. I don't know if I understand your latest remark George.
As far as I know my set up works as follows (in Dutch we call this "stonecoal-English"). A wireless stream of FLAC is entering the Touch and the Touch will send it via a digital cable to the G68. At the end the internal DAC's of the 7000's will do their jobs. In SB server I did set filetype FLAC on native and disabled PCM. As far as I understand does that mean that the Touch process the FLAC files in PCM (The G68 says so).
Anyway, the music via the Touch sounds very good but on basis of what I've read I didn't expect that the sound would be so different of that of the G98. Hecd2 gets a similar tonal balance en that is not quite my experience.
Greetings, Paul. And please correct me if I'm (totally) wrong!

G68ADV, G98DH, 7000, 5200, 5200HC, JVC LCD, Samsung HD cable-receiver, Gefen 4x2 HDMI switcher, MIT cables and Logitech Harmony 1000.