I just stumbled across this thread. I actually took one of these apart almost 2 years ago. If memory serves the two main chips are an ADC and a S/PDIF driver. I had the opportunity to listen to this through a high-end audio system, and I can confirm it is utter rubbish (or at least, it sounded trash through the system we had hooked up). In this case, you definately get what you pay for.
best regards,
stephen