The AE does not have a digital coax out which I found out AFTER I picked by DAC so I had to buy a used Monarchy Upsampler and another cable for about $300 more. You can get an older Monarcy DIP for about $100 on th is site and a used cable for probably $50. There are other options. You can get your AE modified and a coax jack added. I do not know the cost. There is an audiogon member that does it (Audioengr) Or you can get a converter for about $50 but I believe the quality would reflect the cost.
Another option is the new model of the Squeezebox. It is a one box solution for $300. It has both digital output options.
Another option is the new model of the Squeezebox. It is a one box solution for $300. It has both digital output options.