Which DAC for computer based system?


I have recently gone to a digital music server using a G4 laptop, a 500 GB hard drive and a Waveterminal U24. I have ripped all of my cd's to the hard drive and I just figured out that I can get lots of great radio through my computer as well. I can now sell my changer and tuner if I want. I am thinking about putting my money towards a really good DAC since my computer is turning out to be the heart of my system. I can't believe I didn't do this sooner! I am rediscovering my music collection and listening to stuff I haven't listened to for years. It would not surpise me if we begin to see a lot of USB DAC's on the market very soon. What DAC's would you recommend I audition or seek out (I can probably spend upwards of 2K)? Thank you
pardales
I have a Roku Soundbridge M1000 w/SPDIF going to a Musical Fidelity A3.24 DAC and A3 integrated amp. The Roku Soundbridge is connected to my PC via wired Ethernet, but you can go Wi-Fi. My speakers are Magnepan MMGs. Happy with the setup. In addition, I am also streaming WMAs and mp3s with Yahoo! Music Unlimited. The DAC doesn't do much for mp3s, but the WMAs sound just as good as CDs. Y!MU lets you stream or download the file onto your PC.
It looks like our computers will be soon as good as all of our audiophile preamps and DACs.
If I were you, I would use the U24 for now as your DAC and then wait until the new Bel Canto DAC 3 comes out. I currently use a U24 and the Bel Canto DAC 2 with great results and am waiting for the DAC 3 to be released. The DAC 3 will be within your budget and will allow you to bypass the U24 entirely, sending your USB signal directly to the DAC 3's DAC. If you get this combination, then wait until July when Belkin releases their wireless USB hub, you can have your laptop pretty far away from your DAC and amp setup in the same room and just send the signal wirelessly. This is what I'm going to do, at least.
Add Grace M902 in your list, it has USB input. Review can be found on Stereophile website
Hi Pardales,

I own a PowerMac G5 and it's connected through my Musical Fidelity X-DAC into my McIntosh system. It is an excellent DAC for the money (~$800 used) and I have absolutely no complaints after owning it for 6 months.