Flyin2jz,
You need to check on the back of NAD CDP and see what kind of outputs (opitical or coax)that it as. Coax is better, but opitical also works well. Many good DACs in the $300 - 500 price range (and I see some have already been listed). Do a little research and you'll get a feel about the sonic qualities of the various DAC. Other than that hooking up a DAC is a matter of connecting the DAC to output (opitical or coax) on the back of your CDP by use of the apporiate cord, and then connecting the DAC to your amp/pre-amp.
You need to check on the back of NAD CDP and see what kind of outputs (opitical or coax)that it as. Coax is better, but opitical also works well. Many good DACs in the $300 - 500 price range (and I see some have already been listed). Do a little research and you'll get a feel about the sonic qualities of the various DAC. Other than that hooking up a DAC is a matter of connecting the DAC to output (opitical or coax) on the back of your CDP by use of the apporiate cord, and then connecting the DAC to your amp/pre-amp.