Newbie Setup Question - Digital


I could use some help from the community. I'm looking to make my system digital, using a server as my main source and taking a digital signal through a DAC to my pre-amp/amp then to my speakers. Right now, I use a truly non audiophile setup, streaming music from my computer through an Apple Airport Express into my pre-amp. What do I need other than a really good DAC to keep the sound quality high in making my system digital? I will be using only a lossless format for the source. My equipment is fairly old, Nak Pa7 amp and CA7 pre. Also, is there any way to avoid having to run a high quality USB cable (thinking Bel Canto USB link and DAC) from the server to the DAC?
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And you can get a VERY good quality TosLink (optical) cable from Monoprice for a ridiculously low price, check this out - 12 foot cable for $6.00:

http://www.monoprice.com/products/product.asp?c_id=102&cp_id=10229&cs_id=1022901&p_id=2765&seq=1&format=2

The 3 foot cable is only $3.98. And this cable is VERY well-built, you would swear it is a $100 cable just by looking at it.

Merry Christmas!

-RW-
You'll also want a good optical cable to connect the mini optical output on the AE to your new DAC. Van den Hul makes a cable called the opticoupler that they can configure with these connections. I used this set up for a while and it worked great for me.

Good luck.

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Any recommendations on the Tri-Vista tube DAC vs. Bel Canto or Benchmark, specifically related to the jitters caused by the AE? Also, why would I need a Toslink cable? Pre-amp doesn't have digital inputs.
You need a toslink from the Airport Express to the DAC you intend to buy :-)
You need a really good DAC and a good music server device with a solid SPDIF/COAX output like a Squeezebox or Transporter. Alternatively, a specialized DAC with a perfected USB interface like one of the new Ayre or PS Audio units that are coming out soon, or perhaps one of the Wavelength DACs. Proper USB is sort of new.

You also need to meticulously rip your music to your drive using error correction software and lossless or preferably uncompressed formats like .wav or .aiff. Lossess is supposed to be as good as uncompressed but in my experience something gets lost in translation--possibly in the decoding process.