Interesting that you posted this, as I just recently mentioned the Teac UD-301 as one of the DACs out there with USB problems. It's not just you. Sometimes the audio comes through as garbled or quickly drops out.
Based on my testing with multiple setups, it is a DAC issue and cannot be rectified through software. Other people have mentioned the same problem with this DAC and the AI-301. Teac is not the only company to have products with USB implementation problems, though most should have it figured out by now.