I have the exact same question regarding a DAC for my Squeezebox Touch that I am using with my B&W 802DI speakers and my Cambridge 840W amplifier and 840E preamplifier. Have you also considered the Rega Dac which retails in the US for $995?
Looking for a DAC for the Squeezebox Touch
I'm new to digital since buying a Squeezebox Touch a few months ago. The Touch is connected to an external USB hard drive that contains cd ripped Flac files. I'm looking to buy a DAC for around $1k from the SB Touch and connect it to my Sim I-7. I'm considering the Moon 100D and the Wyred4sound Dac1 based on some reviews and comments in various forums. I might consider increasing my budget to possibly the 300D and Dac2 if it would make a substantial difference.