Good DACs for Apple Airport Express? Or receivers?


I'm new to the digital audio world, although I've always hated MP3s and have ripped my CDs to lossless format.

However, naively I figured just setting up an Airport Express into my analog receiver would be the equivalent of playing a CD. Boy was I disappointed!

So doing some research, I now know that I need some kind of DAC connected via toslink optic cable to my receiver.

I'm hoping that people have some suggestions, especially something affordable, like under $300.

Also wondering, are there simple receivers with DACs in them that will do the same thing? I see someone on Craigslist selling a Denon 5700 for $350. Is this old flagship with DAC channels any good? I don't need a theater setup, but this seems like a good deal to a newbie.
engelgrafik
What about the Pioneer VSX-29TX? Someone is interested in selling me his for $300. I read that it had some soldering problems but owner has confirmed that while he knew about that as well, he seems to be lucky in that after 9 years he still has no problems.
I've used the Airport Express with four DAC's, the Benchmark DAC1, the internal DAC in a Peachtree Decco, the Valab and the Beresford. I never had a problem with any of them locking onto the signal from either the Airport Express 802.11g or 802.11n models I've owned.
Cool. I hadn't head of the Beresford before. Pretty reasonably priced for what you get. Sfra, have you listened to the headphone output yet? How does it do with high impedence headphones (e.g. Sennheiser 600s)? Thanks.
The DAC in the Peachtree Decco is sweet. Proof that simple designs can offer excellent results.