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
 Here is a solution for multi source coax and opt inputs with Opt output for convenience while still maintaining Ayre Codex level performance.
   1177A zu opt/coax switcher.
 


http://www.cs1.net/pic/audio_authority/1177A-1_back.jpg
Hi audioconnection,  Thanks for your suggestion for a optical/coaxial switcher box.  It is an interesting concept but I prefer not to add an addition box to my family room cabinet (and prefer a single box solution).

After additional review, I decided to pass on the Benchmark DAC2 HGC because it is NOT FULLY balanced AND requires the DAC’s internal jumper cables to be adjusted to match my Ayre AX-7e integrated amplifier.  My Ayre AX-7e integrated amplifier requires a high quality balanced input so I need  fully balanced DAC. 

I am now researching the Wyred 4 SoundDAC-2 DSDse. It is fully balanced, has good quality sound, has XLR outputs including optical and coaxial inputs. The reviews are very good and it should work fine in my 2-channel home theater system.  Thanks again for all your help.  

If you like laid back,lush, and polite sound take a look at the Luxman DA-06.  A Japanese version can be had on Ebay for about $2800.  

I had the Nad M51 for a week to demo. There was a lot of good going for it but I thought it was not worth $2000 but definitely $1100 used. It is lacking in the lower frequencies and uses a switching power supply vs linear.  It easily bested my Oppo HA-1 but was no where close to my Lite Dac 60 that I modified heavily.  BTW, the Lite Dac was the best audio purchase I ever made. 
A comment of limited help, perhaps.  Anyway, I have a PS Audio PWDII and really like it.  I haven't compared it to your other options, but they're going for between $1000 & $1500 and I really like mine.  I've only compared it to their award winning DSD, but actually preferred the PWD (enough to re-buy one).  I thought it sounded more natural, definitely a better fit for my system (coincident speakers/amps), other ears agreed.  In any case, with the DACs pushing down the price, they're a good deal right now.