Squeezebox upgrade options for $500-600


I've just purchased a Squeezebox Duet system and am having it shipped to my house. I plan on upgrading the squeezebox as soon as it arrives. My budget for my upgrade is about $600 and I am considering two options:
1) Send the unit to Boulder Cable company and get the Enthusiest's Analog upgrade ($425) along with an upgraded power supply ($75 for the power supply and $100 for the upgrade). Total cost = approximately $600
2) Buy the new DacMagic d/a from Cambridge audio ($350) and get the squeezebox d/a converter upgrade ($250). Total cost is the same $600.
Lastly, my amplifier has balanced inputs and only the DacMagic option can make use of this.
I do not plan to use a preamplifier. My other equipment includes an Aragon 8008BB amplifier and B&W 802 series 80(F) Special speakers.
hififanatic
Forget all of the mods and get a good DAC. The quality output is going to be limited by a lot of factors you can't control. I've been using the Duet with a good Dac for several months and it sounds very good.
Buy the Best digital cable for this setup. The squeeze box stock sound great with the right high end digital cable.
I think it's a waste of money.
If I were you, I would pick up a used Transporter instead of the duet. it won't have the fancy remote, but it will be a better performer. And it has XLR outs and built in volume control. It will most likely be superior to an upgraded Duet in every way.

I really don't understand spending this much on the upgrade for SB3 or the Duet. Another option is to leave the duet stock and add a used Bel Canto DAC2 with a decent digital cable, this may be a money better spent.

I really can't imagine how much can anyone improve the dacs in the SB3 or Duet. Transporter has an excellent built in dac, already decent power supply and big enough screen easily visible from across the room.
Post the same question here
www.audiocircle.com/circles/index.php?board=11.0
you'll get a different point of view and an answer to your original question.
Buy the Duet instead. Without having to house the display in the same case, its performance should be better.

At least based on how much the noise the stock SMPS introduces. The Duet is considerably quieter inside. (Trust me, I have measured both.)