[Android Q&A, Help & Troubleshooting] Raenmor:
Looks like I've found the solution for this issue. At leas I was able to make FiiO E07K work on One X running latest CM10.1 nightly, and even playing at 96/24 :victory:

Initial situation was exactly like yours, usb audio mod (this one) made no impact as well.

Maybe it will work for you as well, so try the following (sorry, if I will write it very detailed, like for complete newbies. Just to be sure, you know. And for everyone else's use :highfive:):

1)download alsa utils (kingbeatz have them, for example. They are in system/bin, but don't forget the permissions :p)

2)connect your dac and check if it's connected running "alsa_aplay -l" as #su

3)If it is listed (probably at the very end), it should state it's ALSA name (It's the first, before the full name in brackets. Mine was DACE07K)

4)try running "cat /proc/asound/card*your card number here, from previous step*/stream0". It should give you the details about supported frequencies and bit formats. (I had 8-96khz and S16_LE/S24_3LE formats)

5)(optional/worked for me, but not sure that it won't screw up your system)go to /system/etc/audio_policy.conf and add (if they are not there already) AUDIO_FORMAT_PCM_24_BIT|AUDIO_FORMAT_PCM_32_BIT to the primary formats, and sampling rates. It should look like this:

audio_hw_modules {
primary {
outputs {
primary {
sampling_rates 8000|11025|12000|16000|22050|24000|32000|44100|48000|96000
channel_masks AUDIO_CHANNEL_OUT_STEREO
formats AUDIO_FORMAT_PCM_16_BIT|AUDIO_FORMAT_PCM_24_BIT|AUDIO_FORMAT_PCM_32

6)(main step)go to /system/etc/asound.conf. Add new device and ctl for your DAC, and reroute music stream (as well as general streams for specific frequencies) to your DAC.

pcm.DACE07K {
type plug
slave {
pcm "DACE07K,0"
channels 2
format S24_3LE /put your desired bit format here from step 2
rate 96000 /put your desired frequency rate from step 2
}
}

ctl.DACE07K {
type hw
card DACE07K
}

pcm.music {
type plug
slave {
pcm "DACE07K,0"
channels 2
format S24_3LE
rate 96000
}
}

pcm.sample_rate_96k { /if you frequency from pcm.DACE07K and pcm.music isn't mention add it
type plug
slave {
pcm "hw:DACE07K,0"
channels 2
rate 96000
}
}

the remaining frequencies should be done the same way

7)create init.d script with the following lines:

mount -t debugfs debugfs /sys/kernel/debug

mount -o rw,remount /system

chmod 777 /dev/snd/*;
chown 0.0 /dev/snd/*;

export AUDIODRIVER=alsa;
setprop AUDIODRIVER alsa;
setprop ro.sound.driver alsa;

mount -o ro,remount /system

8)reboot and check your DAC ;)

This done the trick for me, everything works (as well as volume control during playback), audio is routed at 96/24, DAC is hotpluggable (but don't disconnect it during playback, for some reason i have to reboot after this to make it work again). When DAC is not connected the audio is routed the usual way (speaker/headphones).

PS:It's safer to start with 48/16 (rate 48000 and format S16_LE), because they are default for android and thus definitely supported. If it works - you can try to increase it by the method described above. Not sure that it will work on completely stock CM, 'cause I have another set of alsa libs and kernel with 32bit audio support (not sure if it helps here, though :D). But main switching part through asound.conf and init.d is tested on stock CM. Probably you can use libs from KingBeatz mod since it's universal and supposed to have at least 96/24 support. And it improves a lot of sound aspects as well, like increasing resampling quality.