Need Balanced DAC with optical and coaxial inputs for 2 channel home theater system


For my 2 channel home theater system (only), I am considering replacing my Musical Fidelity M1 DAC A with a better sounding DAC.  My needed inputs are one cable box using optical and one Sony Blu-ray player using coaxial.  I need balanced outputs (XLR) to connect the DAC to my Ayre AX-7e integrated amplifier.
  

The Wyred 4 Sound DAC-2 ($1,500) and the Parasound Zdac DAC ($2,500) are on my review list.  Any comments on these units?  Or, what other DAC's should I add to my list?   Considering my two input sources, will I really get better sound if I replace the Musical Fidelity M1 A DAC?

The sound quality using the Musical Fidelity M1 DAC is much better than than using the cable box RCA outputs direct to the Ayre AX-7e amp (my system is wired using both options using the source switch on the M1 DAC).  

Since the Parasound Zdac v.2 DAC is priced at $2,500 that is my top budget but I really prefer to keep the cost under $2,000.  Your comments and suggestions are appreciated.


hgeifman
I heard very high praises for Yggdrasil.  With 15 days no question asked return policy, you got nothing to loose except two way shipping cost. 

http://schiit.com/products/yggdrasil
Hi Lalit, Thanks for the above suggestion.  I also received an email suggesting I look at the NAD Masters M51, Essence HDACC DAC and the Benchmark DAC1 HDR.  
I have received suggestions for the "Schiit" Yggdrasil, Lyngdorf TDAI 2170 ($5,000 integrated amp with DAC), NAD Masters M51 DAC, Wyred 4 Sound DAC-2 DSDse ($2,600) and the exaSound e22 DAC $3,500).  I am sure all of these DAC’s are excellent choices and I am still reviewing my options.

Since I am using the Ayre AX-7e integrated amplifier, I looked at the Ayre Codex DAC but it has USB and Optical (Toslink) inputs only.  My Ayre retailer recommends I change my cable box connection from the DAC to the TV since it eliminates the need for the coaxial input.  I can then use the Ayre Codex DAC. This means I connect my TiVo cable box using HDMI to the TV and use an optical cable from the TV to the DAC. This simple solution eliminates the need for the coaxial connection, simplifies the wiring and eliminates the need for switching sources on the DAC.  Does anyone have any comments on this type of connection?

I like the synergy between the Ayre AX-7e amp and the Ayre CodeX DAC.  Another retailer highly recommends the exaSound e22 DAC and has offered me an attractive price. I have never heard of exaSound Audio Design before his recommendation. exaSound Audio Design was founded by a group of Canadian audio enthusiasts who also happen to be electronics engineers, software developers, musicians and entrepreneurs. Their hardware and software is designed in-house from the ground-up. exaSound products are hand-built and engineer-tested in Canada.   Based on my positive experience with Ayre products, my gut reaction is to buy the Ayre Codex DAC.

Does anyone have any comments on the exaSound e22 DAC vs. the Ayre Codex DAC?   Any comments are welcomed.  Thanks.




I just purchased the Mytec Manhatten.  I haven't heard the others on your list.  I suggest you give that a look.