Best DAC for under $500

The Ack dAck is an extremely musical DAC that belies it's low price. Mine transformed my system with an utterly intoxicating sound. CD's sound so good I need to upgrade my vinyl rig to get it to catch up. All the good things you've read on this unit in AA are true. It's the one to beat.

Viggen, I've got a Marantz CDR-500. Uses the Philips VAM 12.5 mechanism. Same as the $3,000 Cary 303/100.

Meridian 563

I personally really love my Nixon DAC which sells for $250 new. However, it is a bit cosmetically challenged. But, it is super small, so you can hide it. I am not at all familiar with your transport. However, from what I gathered from various posts on AA and AC, the Dack! does a phenomenol job but performs better in systems that are on the euphoric side. Whereas, the Nixon does better in more neutral systems.

I used to have the 563, and I don't think that DAC can touch either the Nixon and Dack. I used to have the CI DAC too with the VAC upgrade. That was a pretty good DAC, but I personally prefer the sonic characteristic of the Nixon better perhaps because it lacks digital filters. However, if you don't like laid back sounding DACs, perhaps the CI is better for you.

used Perpetual P-3A for ~$450 !
Check the stereophile review http://www.stereophile.com/printarchives.cgi?455
you'll know why.