Looking for a DAC for the Squeezebox Touch


I'm new to digital since buying a Squeezebox Touch a few months ago. The Touch is connected to an external USB hard drive that contains cd ripped Flac files. I'm looking to buy a DAC for around $1k from the SB Touch and connect it to my Sim I-7. I'm considering the Moon 100D and the Wyred4sound Dac1 based on some reviews and comments in various forums. I might consider increasing my budget to possibly the 300D and Dac2 if it would make a substantial difference.
128x128ronrags
From your responses it appears the power supply is the way to start. I'll look into both the Welborne and the Bolder for prices. I know DACs sound different and I guess it depends on my taste in sound quality. I looking for a DAC that will have a tight bass response and smooth highs. I listen to variety of music from jazz, classical and rock. Most often rock recording aren't that great especially on CDs. I'm not sure if a DAC will help the sound quality on these recordings.
FWIW, I'm also looking for a DAC to pair with my Touch, and my top list includes W4S DAC2, Bryston BDA-1, and possibly Burson DA-160 (to be released soon). All three have discrete analog sections. A couple forum members tried the DAC2 and BDA1 in their systems and preferred the BDA1. A used BDA1 sells for about $1600, close to DAC2.
Hopefully Burson's DAC is a good contender.

Also, have you checked Soundchekk's toolbox to improve on the Touch's sound? These are mostly software options you can set up yourself: will cost you nothing, and is likely to improve sound.
I'm running a Musical Fidelity V-DAC (battery powered) with my Squeezebox v3. Sounds pretty darn good to me.
Ronrags: as you look into power upgrades for the Touch, don't overlook the battery-power alternatives for it.