Dac suggestions to pair with Squeezebox Touch


I'm trying to put together a budget upgrade for my Dad's Squeezebox Touch. Budget is $300 tops. Will the SB feed an asynchronous DAC like an HRT? Suggestions? Alternatives?
vhiner
Spinaker01,

What improvements do you hear with the V dac versus the SB's internal DAC?

Anonymousauto,

Thanks for the great info and help!
AFAIR John Darko found very little improvement with the upgraded psu when using analog outs, and none when using digital out. He recommended the DAC instead.

Schiit is a great option IMO.
Well I found a nice improvement with the CIA PS. Not earth shattering, but money well spent IMHO.

Shakey
a little cleaner top end and generally smoother frequency response. This is not a night and day difference but a matter of subtle degrees. Tough to beat combo for the money.
The Bifrost is intriguing. Here's a recent review:

http://www.head-fi.org/products/schiit-audio-bifrost-dac