Looking for a DAC for the Squeezebox Touch


I'm new to digital since buying a Squeezebox Touch a few months ago. The Touch is connected to an external USB hard drive that contains cd ripped Flac files. I'm looking to buy a DAC for around $1k from the SB Touch and connect it to my Sim I-7. I'm considering the Moon 100D and the Wyred4sound Dac1 based on some reviews and comments in various forums. I might consider increasing my budget to possibly the 300D and Dac2 if it would make a substantial difference.
128x128ronrags
Wolf-Garcia, maybe it's my ears or system, but I cannot tell the difference between my DACmagic and the SBT.
I was surprised the Dacmagic made such a difference...I'm using the coax digital output on the SBT to the DAC and the xlr balanced outs from the DAC to my balanced Kavent preamp. A more coherent sound with tighter bass than the SBT alone, and simply a different tone all around. I upgraded the cables (xlr A'quest Diamondbacks and A'quest solid core coax). Also the Dacmagic provides 3 more blue lights! I'm sure it's a synergy thing, but I'm also running a digital coax to the DAC from an old Marantz CD changer, and that is improved also. I can now clearly hear the difference between a decent Pandora signal (pretty good) and a wifi iTunes lossless (amazingly good).
Smortega, I received the Welborne power supply for the SB Touch last night but didn't get a chance to use it. I assume there is a break-in period as with all electronics. What difference can I expect to hear using this power supply over the stock power wart and how long is the break-in period?

I'm also waiting the delivery of the W4S dac1. What kind of break-in period can I expect?
Ronrags, it all depends on what kind of gear you have, how revealing, etc. You should experience a tad more in dynamics and more of a 3d sound holographic soundstage. You really need a good dac to get the sound out of a touch. I reclock and upsample as well and the touch can really sing. Stick some 96k 24 bit music on a usb stick in the touch and put it through a good dac. Wow! I'm hearing differences from sacd that I like alot.