DAC with AirTunes?


Can I improve my sound by adding an external DAC to my Airport Express/AirTunes->Arcam AVR300 connection or should I just stick with a direct digital connection to the AVR300? I'm using a Monster AirPort Express Stereo cable(toslink) now and thought about adding a lower priced used(Scott Nixon, Benchmark or Ack!) DAC into the mix. I'd go through the AVR300's analog inputs instead of a direct digital connection. I have some leftover .5 meter Kimber Silver Streak cables that I'd be using for my analog connection so all I'll need is the DAC.

Thanks for any input.
asahitoro
Sorry, I want to clarify here that I'm concerned about possibly improving my two-channel stereo listening by adding an external DAC. The AVR300 has two digital inputs and I'll still be using one(and the AVR300 DACs) for 5.1 listening.
OK, I'm thinking of scrapping my AirTunes for a Squeezebox. Has anyone used this device with good results? How are it's DACs? It seems to have all of the connections and features I need all in one package. Does it work well with Macs?
Asahitoro, there is lots of info on these topics in past threads. I'm not familiar with AVR300 (or any other HT processor), but if you buy an external DAC that is significantly better than the AVR300's DAC, sure, you definitely can improve your wireless music server performance. I doubt that switching from the AXpress to Squeezebox is going to get that kind of gain for you.
Thanks Jayboard.

I've been reading a lot of past posts and am still looking at my options. The AVR300 will let me use stero direct if I connect via analog but not digital so that's one reason I'd like an analog connection. The other reason is can an external DAC sound better for stereo than the AVR300's DACs, which while are good, may be more suited for 5.1? Is that true of most AV receivers? Is there a difference in DAC's for their intended main purpose?

As for the Squeezebox, I like the all-in-one solution if the DACs are that good that I won't need an external DAC. Also, I get a display and an option for a coax connection instead of optical.

Thanks again for the input.
I've been looking for a similar solution. I've read about Scott Nixon's TubeDAC+ which is a low-cost DAC with a tube output stage. There are good threads on A'gon about it. If anyone has any personal experience with it, I'd be interested to hear about it.