Best Inexpensive DAC

I'd have to second the Channel Island Dac. Just saw one without the upgraded PSU go for 220. I've owned several dacs, MSB, Theta, Cal Alpha and the Channel Island was the best. There was one with upgraded PSU for about 400 recently also. This is a very good dac for the money.

I was using a Denon DCD1650AR CD player, when I also decided to run the digital coax output to an external DAC. (I'm using a BAT VK-20, Aragon 8008BB and Thiel 3.6's.) I chose a used Dodson Audio DA217MkIID, which is probably more than your budget allows, but the point I am making here is that the sound was totally transformed. The Denon makes an excellent transport, with solid, reliable and error-free operation with any CD I load into it. You may find that it might be worthwhile to get a better quality DAC, because you might be willing to live with your Denon longer than you think. For what it's worth ....

Good luck!

I think the Perpetual Tech P-3A is an okay piece. I own one and it suits my needs. I recommend the Monolithic power supply, for protection purposes. With the supply, it will be under $500 used. My only complaint is that it is not in the form of a component. It looks more like an ethernet router than a stereo component.

Your approach makes sense, but beware possible shortcomings of the digital out from an old cdp. I did the same thing and used, initially, the digital out from a 1992 top-of-the line Harman Kardon, the HK 7600 11, which was Class D S'hile and cost $600 new back then. I thought it was ok until I tried the digital out from my new inexpensive sacd/dvd/cdp (Sony DVP NS-500V. UNBELIEVABLE IMPROVEMENT. You might try another transport for comparison, eg. a cdp from a friend, just to double check that the Denon is doing its job.

CAL Alpha, 24/96 if you can find one.

Nuff said.