Setup question

Actually if a cable run would work for you, you could run an Opticis fiber optic USB cable - thin and flexible and will go a long, long distance.

I have an ethernet cable I could use that is built in the wall but can't do USB. Any suggestions??

Just thought of a few additions. I have a hp mediavault I used for business as well as apple router/airport. How would you guys hook this up? Control it/iphone possible? Can I integrate my sonos system with a usb dac? Lots of questions sorry.

You can certainly use airport but I think the audio is already analog at the other end

There is a very nice Ethernet/802.11 unit called the Squeezebox by Logitech which can be used to output SPDIF to a DAC. Also has an internal DAC so you can output analog. Have Wayne at Bolder Cable mod it and you will be very happy. There is also a high end big brother the Transporter with balanced outs etc.

As an ethernet node it has the advantage of two way conversation meaning that you can access the music library from the room you are listening to music in.

BTW it can deal with FLAC etc. Also Internet radio. And can use the iTunes library.

I finally replaced mine with an AppleTV and go HDMI into my pre/pro where it is decoded.

Also the iPhone when set up with a free app called "Remote" turns into a nifty wireless remote for iTunes.

You could use an Airport Express with a mini-optical digital cable feeding a conventional DAC (no need for USB). I run this way into three audio systems in my home. Nice, cheap, simple and I'm able to control it all from my iPhone.

I don't stream wirelessly to the Airport because I have a wired network which is nice because interference/dropouts are never a problem. You mentioned network cabling, so this might be perfect for you.