A few of us here really like our transport/outboard dacs. I really enjoy my DAC1 using a DVD player as a transport. The last Stereofool had high regard for the latest and fully upgraded MSB dac over the DAC1. I bet you would like either one. Check out these reviews, I think they might help answer your questions about the advantages of the outboard dacs. http://www.onhifi.com/product.shtml http://www.soundstage.com/revequip/belcanto_dac1.htm http://www.soundstage.com/revequip/belcanto_dac1_followup.htm Total cost could be, with a used DAC1 and a new DVD player, only $1k, not including ic's. Good Luck. Charlie