I think it is possible to implement our design as we have, using these same compontents. The only thing that was limiting us was the speed of the processor. With a faster processor, we could process the data and have it ready for the DAC to convert in a much faster time, and reduce, or hopefully, eliminate the static we heard. However 16-bits of resolution for the input to the ADC, with its 9.4 µs conversion time, and the 16-bits of resultion for the DAC would be more than enough to adequatly represent a complex audio signal.

High Level Design

Hardware Design