How would you improve the sound of Squeezebox?


I just set up a NAS music server with Squeezebox Duet. The convenience of accessing all my music collection is really a great thing. Now the question is, how would you improve the sound of the Squeezebox digital output? I heard people say that SB's outputs digital signals with much jitter, so what DAC's(~$1000) would you use to reduce the jitter? i.e. what DAC's has the better ability to handle jitter? Any other ways that you can improve the SB's SQ?
amaggie05
I'm using a Benchmark DAC-1 with my Squeezebox. I also feed my Oppo 980H digital out to the Benchmark. Another option, if you still play CD's a lot, is to get a higher end CD player that has a digital input.
Transporter is a good route. I have a SB, a Transporter and until last week a Rega Apollo. The SB was about 85% of the Apollo's sound quality while the Transporter was in between the two.
Funny-my squeezebox with CI power supply, Sunnyata Hydra 8, Shunyata Python Vx Alpha and Tara Labs Rsc Air one (and nordost digital) absolutely blew away the Rega Aollo my buddy bought over. I guess the SB peripherals have a bit to do with things.
At RMAF07 I heard the SB in Dan Wright's room (ModWright is his company's name). The SB was modified to have a tube o/p stage (that's for the analog o/ps). I'm sure that Dan knows how to mod the SB digital o/ps to get lower jitter.
A 2nd person who might do similar mods is Steve Nugent of Empirical Audio.
Contact these 2 fellows & visit their websites for possibly more info.
Bolder Cable does a digital mod to the SB3 that has been well reviewed. Also, the other mod that seems to be popular with the SB3 is to upgrade the power supply. Again, Bolder does this and CI Audio sells a nifty looking separate power supply for the SB3. I have an unmodded SB3, but if I were going to seek improvements this is where I would start. I suggest going to the Bolder Cable and CI Audio forums over at Audio Cirlces for more info.