diff --git a/apps/lang/english.lang b/apps/lang/english.lang
index 813955d3b0..a3d8a03858 100644
--- a/apps/lang/english.lang
+++ b/apps/lang/english.lang
@@ -1762,3 +1762,8 @@ id: LANG_CAR_ADAPTER_MODE
 desc: Displayed for setting car adapter mode to on/off
 eng: "Car Adapter Mode"
 new: 
+
+id: LANG_LINE_IN
+desc:  in settings_menu
+eng: "Line In"
+new:
diff --git a/apps/settings.c b/apps/settings.c
index 9b8f1b35e1..429366d8ed 100644
--- a/apps/settings.c
+++ b/apps/settings.c
@@ -58,11 +58,13 @@
 #include "sprintf.h"
 #include "keyboard.h"
 #include "version.h"
-
+#ifdef HAVE_MAS3507D
+#include "dac.h"
+#endif
 struct user_settings global_settings;
 char rockboxdir[] = ROCKBOX_DIR;       /* config/font/data file directory */
 
-#define CONFIG_BLOCK_VERSION 7
+#define CONFIG_BLOCK_VERSION 8
 #define CONFIG_BLOCK_SIZE 512
 #define RTC_BLOCK_SIZE 44
 
@@ -134,6 +136,7 @@ Rest of config block, only saved to disk:
 0xAE  fade on pause/unpause/stop setting (bit 0)
       caption backlight (bit 1)
       car adapter mode (bit 2)
+      line_in (Player only)  (bit 3)
 0xAF  [available/unused]
 0xB0  peak meter clip hold timeout (bit 0-4), peak meter performance (bit 7)
 0xB1  peak meter release step size, peak_meter_dbfs (bit 7)
@@ -405,7 +408,8 @@ int settings_save( void )
     config_block[0xae] = (unsigned char)
         ((global_settings.fade_on_stop & 1) |
          ((global_settings.caption_backlight & 1) << 1) |
-         ((global_settings.car_adapter_mode  & 1) << 2));
+         ((global_settings.car_adapter_mode  & 1) << 2) |
+         ((global_settings.line_in & 1) << 3));
     config_block[0xb0] = (unsigned char)global_settings.peak_meter_clip_hold |
         (global_settings.peak_meter_performance ? 0x80 : 0);
     config_block[0xb1] = global_settings.peak_meter_release |
@@ -490,7 +494,9 @@ void settings_apply(void)
     backlight_set_timeout(global_settings.backlight_timeout);
     backlight_set_on_when_charging(global_settings.backlight_on_when_charging);
     ata_spindown(global_settings.disk_spindown);
-
+#ifdef HAVE_MAS3507D
+    dac_line_in(global_settings.line_in);
+#endif
 #ifdef HAVE_ATA_POWER_OFF
     ata_poweroff(global_settings.disk_poweroff);
 #endif
@@ -690,6 +696,7 @@ void settings_load(void)
             global_settings.fade_on_stop = config_block[0xae] & 1;
             global_settings.caption_backlight = (config_block[0xae] >> 1) & 1;
             global_settings.car_adapter_mode  = (config_block[0xae] >> 2) & 1;
+            global_settings.line_in = (config_block[0xae] >> 3) & 1;
         }
 
         if(config_block[0xb0] != 0xff) {
@@ -1059,6 +1066,12 @@ bool settings_load_config(char* file)
                                       "9","10","15","30","45","60"};
             set_cfg_option(&global_settings.poweroff, value, options, 15);
         }
+#ifdef HAVE_MAS3507D
+        else if (!strcasecmp(name, "line in")){
+            set_cfg_bool(&global_settings.line_in, value);
+	    dac_line_in(global_settings.line_in);
+	}
+#endif
         else if (!strcasecmp(name, "battery capacity"))
             set_cfg_int(&global_settings.battery_capacity, value,
                         1500, BATTERY_CAPACITY_MAX);
@@ -1341,6 +1354,10 @@ bool settings_save_config(void)
     fprintf(fd, "car adapter mode: %s\r\n",
             boolopt[global_settings.car_adapter_mode]);
 
+#ifdef HAVE_MAS3507D
+    fprintf(fd, "line in: %s\r\n", boolopt[global_settings.line_in]);
+#endif
+
 #ifdef HAVE_MAS3587F
     fprintf(fd, "#\r\n# Recording\r\n#\r\n");
     fprintf(fd, "rec quality: %d\r\n", global_settings.rec_quality);
@@ -1472,6 +1489,7 @@ void settings_reset(void) {
     global_settings.max_files_in_playlist = 10000;
     global_settings.show_icons = true;
     global_settings.recursive_dir_insert = RECURSE_OFF;
+    global_settings.line_in = false;
 }
 
 bool set_bool(char* string, bool* variable )
diff --git a/apps/settings.h b/apps/settings.h
index 635834cac0..93516d86cf 100644
--- a/apps/settings.h
+++ b/apps/settings.h
@@ -171,6 +171,8 @@ struct user_settings
     int max_files_in_playlist; /* Max entries in playlist */
     bool show_icons;   /* 0=hide 1=show */
     int recursive_dir_insert; /* should directories be inserted recursively */
+
+    bool   line_in;       /* false=off, true=active */
 };
 
 enum optiontype { INT, BOOL };
diff --git a/apps/settings_menu.c b/apps/settings_menu.c
index 7af267389a..d6fe1c6316 100644
--- a/apps/settings_menu.c
+++ b/apps/settings_menu.c
@@ -43,6 +43,9 @@
 #include "peakmeter.h"
 #endif
 #include "lang.h"
+#ifdef HAVE_MAS3507D
+#include "dac.h"
+#endif
 
 static bool car_adapter_mode(void)
 {
@@ -630,6 +633,15 @@ static bool spindown(void)
                    ata_spindown, 1, 3, 254 );
 }
 
+#ifdef HAVE_MAS3507D
+static bool line_in(void)
+{
+    bool rc = set_bool(str(LANG_LINE_IN), &global_settings.line_in);
+    dac_line_in(global_settings.line_in);
+    return rc;
+}
+#endif
+
 #ifdef HAVE_ATA_POWER_OFF
 static bool poweroff(void)
 {
@@ -893,6 +905,9 @@ static bool system_settings_menu(void)
 
     struct menu_items items[] = {
         { str(LANG_SPINDOWN),    spindown        },
+#ifdef HAVE_MAS3507D
+        { str(LANG_LINE_IN),     line_in         },
+#endif
 #ifdef HAVE_ATA_POWER_OFF
         { str(LANG_POWEROFF),    poweroff        },
 #endif
diff --git a/firmware/drivers/dac.c b/firmware/drivers/dac.c
index c8a5414611..4212b322f0 100644
--- a/firmware/drivers/dac.c
+++ b/firmware/drivers/dac.c
@@ -24,6 +24,10 @@
 
 #ifdef HAVE_DAC3550A
 
+static bool line_in_enabled = false;
+static bool dac_enabled = false;
+
+
 int dac_volume(unsigned int left, unsigned int right, bool deemph)
 {
     int ret = 0;
@@ -54,12 +58,16 @@ int dac_volume(unsigned int left, unsigned int right, bool deemph)
 ** Bit6:  0 = 3V        1 = 5V
 ** Bit5:  0 = normal    1 = low power
 ** Bit4:  0 = AUX2 off  1 = AUX2 on
-** Bit3:  0 = AUX1 off  1 = AUX2 on
+** Bit3:  0 = AUX1 off  1 = AUX1 on
 ** Bit2:  0 = DAC off   1 = DAC on
 ** Bit1:  0 = stereo    1 = mono
 ** Bit0:  0 = normal right amp   1 = inverted right amp
 ******************************************************************/
-int dac_config(int value)
+/* dac_config is called once to initialize it. we will apply
+   our static settings because of the init flow.
+   dac_init -> dac_line_in -> mpeg_init -> dac_config
+*/
+static int dac_config(void)
 {
     int ret = 0;
     unsigned char buf[2];
@@ -67,7 +75,8 @@ int dac_config(int value)
     i2c_begin();
 
     buf[0] = DAC_REG_WRITE | DAC_GCFG;
-    buf[1] = value;
+    buf[1] = (dac_enabled ? 0x04 : 0) |
+        (line_in_enabled ? 0x08 : 0);
 
     /* send write command */
     if (i2c_write(DAC_DEV_WRITE,buf,2))
@@ -79,6 +88,18 @@ int dac_config(int value)
     return ret;
 }
 
+void dac_enable(bool enable)
+{
+    dac_enabled = enable;
+    dac_config();
+}
+
+void dac_line_in(bool enable)
+{
+    line_in_enabled = enable;
+    dac_config();
+}
+
 void dac_init(void)
 {
     unsigned char buf[2];
diff --git a/firmware/drivers/dac.h b/firmware/drivers/dac.h
index ef5e4e992d..dc953c1420 100644
--- a/firmware/drivers/dac.h
+++ b/firmware/drivers/dac.h
@@ -36,8 +36,9 @@
 #define DAC_AVOL        2
 #define DAC_GCFG        3
 
-extern int dac_volume(unsigned int left, unsigned int right, bool deemph);
-extern int dac_config(int value);
+extern int  dac_volume(unsigned int left, unsigned int right, bool deemph);
+extern void dac_enable(bool enable);
+extern void dac_line_in(bool enable);
 extern void dac_init(void);
 
 #endif
diff --git a/firmware/mpeg.c b/firmware/mpeg.c
index 24b3a68008..ef6972f3e4 100644
--- a/firmware/mpeg.c
+++ b/firmware/mpeg.c
@@ -3212,7 +3212,7 @@ void mpeg_init(int volume, int bass, int treble, int balance, int loudness,
     mas_poll_start(1);
 
     mas_writereg(MAS_REG_KPRESCALE, 0xe9400);
-    dac_config(0x04); /* DAC on, all else off */
+    dac_enable(true);
 
     mpeg_sound_channel_config(channel_config);
 #endif