To DAC or not to DAC...


I am looking to build a high fidelity audio server that would connect to a tube amp.
The amp has only analog inputs, so after doing some research it seems that the best bet in getting good sound out of the computer would be an external DAC.

I have some music in 24bit format, so USB DAC is out of question(16bit output,only), optical seems to be the way of getting bit-perfect output.

Is this scenario the best one for my needs? According to my research, yes. But I would like some input.

A good DAC can cost up to 20k USD, but I am looking for something in range of 1000USD and under. Recommendations are HIGHLY praised!

mike
vdg
I am currently evaluating an Apogee Mini DAC with FireWire option. I bought it from Guitar Center because they have a 30-day return policy. This DAC will give you all the data connection possibilities, USB, Toslink, SPDIF, and FireWire. While I have been using it for about a week, I have to say the sound is rather involving and not at all sterile or bright as often the impression is given to pro audio gear. The flexibility is also a bonus on this DAC as far as the sample rate that it will handle.

While not the eye candy of the more expensive audiophile DACs, I am rather impressed on what this DAC does, and I believe regardless of that, it can stand on its' own.

Take a drive since there is a 30-day trial offer from Guitar Center. You also may want to try Channel Islands' DAC. They have a Toslink connection and a 30-day money back with a 10% restocking fee. It got a great write up in Tone Audio Magazine.
As far as tube DACs, check out positive feedback online. They did a review of the MHDT Paradisea DAC in issue 31, I believe. Got heap-big praise.
I am planning a similar digital setup. In the meantime I have a Benchmark that I use with a Thule CD player (Phillips drive unit). I had Steve Balliet modify the DAC. It has a bunch of Bybee devices and some other improvements. Benchmark liked some of the internal wiring changes so much they used them themselves.

Before anyone asks me what changes, I am a sound guy. That is I like the sound more than knowing how it ends like that. I home demoed a stock Benchmark, liked it but was not totally convinced. Steve dropped off his modified demo unit, which I never returned. So anyway, when ever I can get around to the wireless computer project I will have a great DAC. Until then I have outstanding digital. Price new with mods is around $2000.
I did a careful comparison of the Benchmark DAC-1 with the Apogee Mini-DAC, in a pal's system using GamuT electronics and Gradient speakers. The transport was by Sonic Frontiers.

The two DACs sounded quite different. Although both could be lyrical with female voices the Apogee sound seemed more concerned with musical flow whereas the Benchmark with the musical moment. The Apogee sounded more natural to me, although that's a matter of taste. With the Benchmark, the music sounded 'ripped', on steroids with all its muscles defined.

I'm sure that if you can audition the two, you will have a clear preference.
I also use a reflection audio modified benchmark and the results have made me very happy.....I use an RME foreface clocked to an isocrone antelope and then to the dac....I am very happy with this after owning many expensive single and two box cdp's.