DAC for entry level system

The Rega does have 2 coaxial inputs but would put you over bugets $50-130.

Another Dac that people suggested for me when I was the looking at the same price point used was the Parasound Z Dac. It has good reivews and you can buy new for $500.00 and try it out in house for 30 days through audio advisors.

I ended up going over my $500 budget by $70 getting the rega + shipping. A lot of the used DAC that were priced between $800-$1200 are still above your price used. So you end up having to strech a little or look into buying new $500 DACS.

aLot of good reviews for MDBT Havana (tube) but they don't seem to come up for sale as often.

If you would like to have a very musical dac that is inexpensive and fun to use, I would recomend the Jolida tube dac. It is about 500.00 new and comes with 2 12ax7 tubes. It is well constructed and uses premium parts ( such as Clarity caps). Tube rolling is easy and it has USB, coax, and optical inputs. It is so very musical. I use mine off of my Apple TV (mostly the radio channels) and my XM/Sirious tuner ( before I got rid of it).
It is a very good quality unit.... Very open in sound, good bass and huge soundstage.

My 0.0263 cents
Tubeears
FYI: I am using the new Mullard re-issue at the moment with fantastic results. The Tung- Sols are great as well.

Honestly, if all you're trying to do is do better than the DAC in the Touch, that isn't going to be very hard to do. As I mentioned, I'm running a very modest XDA-1 DAC and it is a clear improvement over the internal DAC of the Touch.

There are lots of DACs out there and many of them sound good, albeit different.

What I'd do is pick up a used PS Audio DL III. It's a nice DAC and goes for around $400, used.

I'd also like to make a comment about equipment with tubes. If you decide to go with tubes, be prepared because it is a bottomless pitt. I'm just dipping my toes in the tube pool and am finding that good tubes start at about $100 a pair and go UP from there.

Thansk you all for the responds.
Tonyangel, I was just talking to a friend and he also sugested the PS audio DL III. Since it was originally relesed few years ago, do you still think that it's a good DAC compare to relativelly new units like Musical Fidelity M1-DAC that was sold here for $525?
Darkstar1, Good Idea to try the Z DAC at home. I'll read more about the unit. I'm planning to go this weekend to the T.H.E show in Newport, and I just saw that Parasound will demonstrate there Z line componants. It will be intersting to hear it.
Since I have solid state amplification, I also thought that a tube based DAC might be good idea. I never had tube equipment before, and I hope I'll be able to try it. I saw that the MDBT Havan was sold used for around $700, then I think it's above my budget.

the better dac,the better sound you will get,even entry level systems benefit from quality dac