Transport for Bel Canto DAC2

First suggestion would be to try a digital cable that is 1.5m long (assuming yours is currently shorter than that).

Second suggestion would be to find a used Sony S7700 or S7000...usually can be found on eBay for $150-$200 and are excellent as transports...

Eeerie,

There is a pretty good (IMHO) explanation of why digital cable length makes a difference here (assuming you are using coax instead of optical):

http://www.positive-feedback.com/Issue14/spdif.htm

If the article is too technical to understand, the gist of it is that a 1.5m digital cable is able to hold the entire length of a square wave's "rise-edge" based on spdif specifications, and that shorter cables can cause jitter-related problems because of mismatched impedences and the resulting signal reflection inside the cable.

The other important factor is to make sure the digital cable you use is truly 75ohms.

If a hard drive solution is interesting to you, also check out the Squeezebox by Slim Devices (http://www.slimdevices.com). It's only $250-$300 and works with iTunes...

Clio...I posted the link to Steve's SPDIF article in Positive Feedback above...