I'd go with Dusty's new Channel Island VDA-2 Dac, bound to be a giant killer, just like his new D series amps. For $599.00, it's a no-brainer. There's a preview on Audio Circle with some nice pictures.
Then there's the host of non-oversampling DAC's. They definitely have their own flavor but many, many consider them more musical overall. There's at least 10 I can think of for under $500. Do a search here, on Audio Circle and on Audio Asylum.
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