Is there a qulaity DAC that has USB and coaxial.

Hi Early,

Yes there are a lot of options out there, and I'd agree with recommendations that you pay attention to the USB implementation. Though there is some debate and some exceptions may exist, generally async USB implementation is regarded as superior. And think about whether you will be using hi-rez digital files (24/96 or 24/192) either now or in the future (and I'd recommend that you do check these out, they sounds fabulous especially if well-recorded). The standout bargain to my mind with all of the above capabilites is the Wyred4Sound DAC2 at $1500. If you are not interested in spending that type of money, you might want to check out the Wyred DAC1 (it's USB is not async and limited to 24/96) or the Eastern Electric DAC (limited to 16/44 via USB). And then there are the USB to coax/BNC etc converters. Many of them offer async USB implementation.

Thanks for the feedback. I am interested in but have no experience with hi/rez digital files, and have a budget of aroound $3k for DAC. Currently listen to a Bel Canto 2 which is pretty decent with McCormack UDP as transport. Other components are Mastersound 300BSE, and Harbeth Hl5's, (they sound pretty darn good with only those 15 or so watts). I'm thinking about going to a computer based server and USB DAC, or maybe stay with my Squeezebox Touch and Apple lossless files via wireless. Thoughts about that?
I sincerely appreciate the input.

Now that you mention your budget, perhaps PS Audio PWD could be a possibility. Please note, though, that it's a full sized component in width and depth at around 17". Not sure if form factor is an issue as opposed to physically smaller units such as those mentioned above.

Just noticed this thread. I'm surprised nobody specifically mentioned the PS Audio Digital Link III. It has both coax and USB, sounds great, and is really easy to use. I personally like it better than the W4S Dac-1.