How do you get Good Sound from a PC ?

Currently one of my computers has an older soundblaster live card w/44khz digital input/output. Another has a 44hkz digital output on the motherboard (Asus A7N266-E). I have the soundblaster connected to a phillips cdr-880 which I use as a 44khz D/A and A/D unit. Sound quality is so-so.

I would like to integrate a digital recording system into my main audio system so that I can record and playback music from my lp's and from mp3's.

What would give me the best sound in the 200-1000 price range ? Also where can you buy the items below cheaply ?

My current considerations for hardare upgrades are
- the audiophile 2496 soundcard,
- the 96khz Apogee Rosetta ($1000!),
- an alesis 9600 hard disk recorder($1000+!),
- or the ART DIO with some hot-rod modifications.

My main audio system has an SCD-1, a tuner & a record player.