The Musical Fidelity A3 24 isn't bad sounding and you can pick 'em up for under $600 used. I've had one for a year and it sounds good. Try a good digital cable with the money you have left over. Some of our local audio group are using digital cables from Ridge Street with good results.
If you must spend more on a DAC, then the Audio Note seems like a good recommendation.
Rooze
If you must spend more on a DAC, then the Audio Note seems like a good recommendation.
Rooze