Best DAC for $500

Since I don't think it's been mentioned, I'll throw in the Peachtree Dac It, just for something more to consider. As has already been mentioned, there is a lot of good talk around regarding the Arcam rDac, the Schiit Bifrost, DacMagic, V-Dac II, etc.

They're all about the same with the exception of the their different sonic personalities. The trick is to find the one that you'll enjoy listening too.

Personally, I run an Emotiva XDA-1. I originally got it because it was a good deal and I needed a DAC. Since having gotten it, I've been able to compare it to a DacMagic, V-Dac II and rDAC and have stuck with the XDA-1 because it bested the other three in my system.

The next two that I want to try are the Peachtree and the Bifrost. I have high hopes for the Bifrost. The specs look really good on paper.

I've been shopping for just this, looked at the Peachtree iDac, Schiit Bifrost, Musical Fidelity V-Dac II and the Arcam rDac... Ended up going with a brand new Valab Dual Mono with Balanced and Single ended output.
Features:
1. Two WM8741 dac chips -- mono configuration (one chip for one channel)
2. Two sealed high grade transformer deployed, one for digital, another for analog circuit.
3. Dedicate voltage regulation circuit, 2 stage for digital circuit, each wm8741 chips have independent second stage regulated power supply.
4. CS8416 SPDIF receiver for 24bit 192k SPSID signal compatibility.
This is most stable and high compatible SPDIF receiving chip on market.
This dac can receive and decode real 24bit 192k SPDIF signal!
Most 24bit/192k dac actually can not deal with 24bit 192k SPDIF signal.
They just use a 24/192 dac chip but fail to perform 24bit 192k capability.
5. TENOR TE7022L usb receiver chip, supporting native 24bit 96K digital output capability.
6. 4x OPA627au (by 2pcs of '2x mono to dual opamp adapter) for analog balanced XLR output.
(VALAB version specified by 2pcs of '2x mono to dual opamp adapter)
7. 2x AD797 OPAMP for analog RCA output. (VALAB version specified)
8. All high grade parts usage, carefully chosen parts for best sound performance.
9. Professional circuit layout to get best circuit stability and great performance.
We achieve theoretical performance of wm8741 dac should have! Please see last two photos of testing result.
10. Aluminum housing, hair skin surface procession.
11. Digital Input: balanced Spdif AES/EBU port, RCA, Toslink Optical input and USB
12. Analog Output: balanced analog output via XLR port, single ended output via RCA port (CMC socket; VALAB version specified).
13. Dimension: 190 x 70 x 330 mm (W x H x D)
14. Both 110/120v and 220/240v version supported.
I'll try to let everyone know when it arrives.
I paid $365 delivered

Schiit Bifrost+1

I've only tried a couple of DACs in my system but after inserting the Bifrost, my room felt crowded. I never thought I'd use that word to describe a product but there it is.

Every player had equal billing. Prominence on the right and left increased to the point where they (the musicians) seemed to be closer. Center stage was as strong as ever, if not more. Suffice to say, info recovery was the best I've experienced. I know there are better DACs out there but you'd have to pay a hell of a lot more (dare I say) to get much better performance. That, and I didn't know my speakers went that low.

Just my take.

All the best,
Nonoise

Audio gd NFB-3.1 is a fantastic deal at $299 (promo price). I've heard that the 2.1 at $465 is even better.

A used in-production DAC that retails for $1-2k + less than 5 yrs old + motivated seller. I just recently picked up one of those DACs. Sounds great -- relatively speaking of course.