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
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
Been running my new Bifrost for close to 24 hours now. Sound quality is definitely superior to the DAC inside the Touch. Much more detail, and great imaging. Very smooth also, with no graininess that I could detect. Bass is a little on the light side, but this could improve with further burn-in. In all, very satisfied with this purchase.