which bang for the buck DAC?

Your comments are great! Ps Audio diii is selling at 695 brand new now so this is interesting. Dacmagic is at 395. Is the ps audio diii 300 better than the dacmagic? There seems to be a big follwing with the Bencmark, but an used bechmark usb would set me back 1000 bucks. Tough decision.

Two more DACs to compare to the PS Audio: Channel Islands VDA-2 with upgraded, outboard power supply (~$800 @ CIAudio.com) and a new DAC, just out, from Music Hall available at Music Direct for $595: http://www.musicdirect.com/product/84663
The Music Hall has a USB input and a tube output stage. IIRC, all three of these DACs can be purchased with a 30-day return option, so you risk only the shipping fees.

And don't neglect the digital cable! Much has been said here on the importance of a respectable digital cable to connect your CD drive or PC to your DAC. No need to break the bank, but since you budgeted $1K, and these DACs run under $800, you can afford decent digital and USB cables.

Let us know how you make out!

I also have the Krell 400xi and went with the Benchmark using XLR to the amp and usb to the PC. The sound is very good and the connection to the PC works exactly as billed (so easy my wife uses it and never a dropout since added). A recent review in HiFi Choice compared multiple dacs (from Bryston to Cambridge). Cambridge was the best value for money. I bought about a year ago and there were fewer options but would have seriously considered the Cambridge if it were available.

another consideration would be an integrated amp with DAC (or a digital integrated).

I use the Bryston B100SST with DAC with excellent results. A Tact or Lyngdorf integrated should work very well too. Neither has a USB input however so you will need some way to get the digital signal from your PC into a form the DAC can decode.

In my situation I have a Mac Mini and a mini-optical to Toslink cable from Van Den Hul. I use a standard SPDIF cable from my CD transport to the Bryston.

Good Luck!!

Jeff

There seems to be a big follwing with the Bencmark, but an used bechmark usb would set me back 1000 bucks. Tough decision.

That is because it is good value even at that price. You get a great headphone amp as well as a solid preamp. The Benchmark is of a precise nature rather than some warmer flavors that are available, however, perhaps the biggest advantage of the Benchmark is its reputation for jitter immunity - practically speaking (if you believe all the claims and reviews) it means you no longer have to worry too much about the source quality or cabling to the DAC (so it removes unknowns - just plug and play - no worries). The biggest drawback is perhaps the precise sound which some people really don't like (I suspect they prefer a more organic, rich and less detailed sound that can really help make a bad recording sound its best and less like a recording).