I, too, would like to hear recommendations on what level of outboard DAC it would take to sound significantly better than the MC-1 fed by a digital source. On most pre/pros every input is converted to digital and then back to analog, so you're listening to the pre/pro DACs ultimately anyway. There are notable exceptions, such as the Proceed AVP, but even the Krell HTS converts all analog to digital. And, IMO, the MC-1 fed by a decent transport through good amplification and speakers sounds pretty darn good. I'm quite sure it's possible to get significantly better sound, but I have always assumed that it would require the 2-channel preamp with HT pass through route to avoid the digitizing of the signal and reap the benefits of a better DAC. Indeed, that's the route I have on the radar for some future point, but it's obviously an expensive route. I just have a hard time believing that switching between similarly priced pre/pros that put everything through ADC / DAC routes is going to have profound impact on the sound quality. FWIW - I agree with those who have stated the clear superiority of the MC-1 to the DC-1 - I upgraded from one to the other and it is definitely at another level to be listening to the MC-1. In my mind, the MC-1 offers incredible ease of use, equal to the best HT sound, and very respectable two-channel sound. Lexicon also has a history of aggressive trade-in policies, which is a big plus with all the effects of Moore's Law around us.