New to digital high-end, need help


I'm a long-time audiophile that ripped all my CDs to flac over the past year. I've been listening through Duets/Touch for office and casual use. I have not really had a high-end home system in 6 years. Now I'm building a high-end system that will use a digital/flac source.

I have Aerial 10t speakers and currently looking for a pre/amps (possibly Audio Research or Classe). I'm familiar with the arguments for SS or tubes, etc. I need help with the source/dac/volume control because, after all my research and reading, it feels like I still don't have a clue . . .

1.) I'm using a Squeezebox Touch connected with wifi. At what price point can I expect a DAC to make a dramatic difference? $500? $1,000? $3,000?

2.) I would consider bypassing a preamp/linestage for now and using a DAC with volume control (or similar setup)I use an iPad mini for the Touch remote at this point, but the volume can be finicky and I would like to use the volume control on DAC/preamp to limit the max while using the ipad.

3.) I have read the digital volume controls (such as Touch/iPad??) actually decrease resolution as the volume is decreased. Is this true? Does that mean the Touch volume should always be at 100%?? 75%?

4.) I've heard $60k systems and owned $20k systems (just to provide a reference point). Are digital files successfully used in that level of system? Can they sound as good as a quality CD source? If so, what caliber of equipment is necessary/desirable?

Thanks to anyone that can help me muddle through this process.
amansker
Assuming, down the road, we add a turntable to the system. Are there pre/dacs that allow for analog connections? Everything I see only has inputs for digital.

Do any of the phono amps have xlr outs?

Or is more common to use an actual "preamp" with volume, etc. and run the pre/DAC into the inputs of that?
Nightfall - yes 2009 Oct Mac Mini. Hynesdesign.com SR5-18.5 supply. I control mine from iPad at times.

Steve N.
Empirical Audio
Amansker - the Final Drive transformer buffer/selector allows for introducing other analog inputs betwee DAC and amps. Improves SQ dramatically as well as other benefits like galvanic isolation. Breaks ground-loops.

See:
http://www.empiricalaudio.com/products/final-drive

Steve N.
Empirical Audio
Good choice on the 10T's... I also use them and still think they are fantastic speakers.

I've tried tons of different pre/amp combos with them. Give them plenty of clean power and you will be rewarded.