An external device connected with USB will still use the windows audio interface (MME), due to the fact it runs over the USB bus and windows still must use MME as USB is not a direct interface. The software can be "tricked" using things like ASIO4All, but it is still the exact same result as using the onboard crap (realtek Codec). USB DECoders (DAC) can utilize a pure audio output since the signal is not processed by the PC and is output direct through the digital USB, but that does NOT run in reverse. You are actually adding an extra encoding/decoding step by using a USB input, because the external encoder must take the analog input, convert it to digital, then it can run through the normal process through the Windows MME crap using the on-board audio Codec. A good sound processor built into your desktop with true ASIO support eliminates all of this crap, doesn't rely on software to do its job as every other option does, and eliminates unneeded overhead (where your lag comes from), and sources of noise. You can have millions of dollars in Midi equipment, mixers, encoders, syths, etc. that you use, but the second you connect to a computer using on-board CODEC, and MME (even with the ASIO4All trickery), it will sound just as crappy as every other guy who refused to spend a couple hundred bucks on a true ASIO Sound Processor and connect your equipment through it. Just be careful to buy a real ASIO sound processor, as there are a LOT of fakes out there that are nothing more than just another CODEC under a false flag (Sound Blaster Recon for instance is a fake sound card, use an XFi Elite Pro or ZXR, Yamaha, do your homework)
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