Music / sound separation....what contributes to this?

On the advice of many forum members (thankfully) I significantly improved the sound of my SUPERNAIT 1 with the additional of a dac (denefrips ares 12th anniversary), and a Hi-Cap DR.

What has impressed me most, is the space between instruments and all the additional note separation in the music, both fore/aft and left/right.

But im perplexed as to why this is (technically speaking). Are there any semi laymans explanation for what contributes to this?

Simply resolution.
Your Dac upgrade is putting in more information.
The Hicap is letting the preamp stage of your supernait make more sense of it.
Hope that helps.

The digital to analogue conversion makes a huge difference. If your amp is transparent and revealing this extra detail makes it through to your speakers.

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One of the things that was a pleasant surprise when I added my subwoofer was the marked improvement in soundstaging and ambience that came through. Frequency response is now pretty much flat to 24hz in my room so very low bass verging on the sub sonic seems to make a contribution.

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