Seeking DAC $300

Make it an even 1k and find a Wadia 121. Everything else you've been thinking about won't come close. The Bi-Frost is a solid recommendation on the cheap however, so if you are sticking to 300 that's a safe bet.

But if you can spend more you can do better. Depends on the rest of your system of course. The Wadia is wide open and neutral so if you're looking to warm up your system it's not the ticket.

Spring for the Bifrost... I have it and I'm completely satisfied with it... I had the v-dac but returned it after all the recomendations for the Bifrost... You can check it out in my system pics...

With the Gungnir, how would I set it up? I have a SPDIF connection on my motherboard but isn't that tied to the internal sound card that I want to avoid?

Thanks for all the suggestions - I have some research to do!
Any thoughts on the Ifi Idac?

Gungnir will reclock a digital signal, so I wouldn't worry as much about the SPDIF from your computer.

For 300 you might be able to get a MHDT paradisea + that is a really nice sounding DAC that competes with much higher priced units for about 600 or so you could get a Benchmark DAC1 that is a step up and comes very close to the sound of more expensive DACs such as the Bryston BDA1. As you move up the line with DACs I find it easy to describe the improvements as greater clarity. With each jump you remove another veil from the sound.