Budget DAC vs Budget CD Player?

Kray- I currently have the 1st generation Emotiva XDA-1 DAC in my system. It is a wonderful dac and a steal of a price but the USB input on my unit is nothing special. I would recommend the latest version if you go with Emo, I think they improved the USB section. The remote control volume and swithching really comes in handy!

The DAC route also allows an upgrade path via USB converter, a la Musical Fidelity Vlink 192, JKSPDIF MK3, Audiophilleo, Anedio, Empirical Audio, many others. Using a USB converter to re-clock the signal offers significant upgrades in sound vs. the USB inputs in the vast majority of DACs.

Realmo- would you need a USB converter if using a ASYNC USB DAC?

Mik971- so how do you feed the DAC from your computer? Digital mini jack?

Usb to usb mini. My unit is not async so the sound was not that great. I ended up switching to a PURE I-20 ipod doc (i have an ipod too) and used the toslink connection to the DAC. It sounded much better this way. I would recommend the new Emo DAC(ansyc) and use a decent USB cord.

Just because a DAC has asynchronous USB, does not mean the USB interface is well designed. The best DAC designer is not necessarily a great USB engineer, these are different skill sets. Smilar to a DAC, There are also many different levels of quality in the components inside a USB converter, like the input/output stages, the quality and separation of the power supply, the quality of the crystal oscillators that re-clock the signal, etc.
one DAC that I really want to hear is the schitt bifrost, I have heard/read that the USB interface is good, but I have also read that it sounds a bit thin, not detailed enough in the low end. The Usb board is interchangeable in this unit.
The USB converter that I feel is the best quality vs cost is the JKSPDIF mk3, for various reasons. Have not yet sprang for this one. I still use the Vlink 192, which meets all of my criteria except one, it is still powered off of the USB cable, which is a no no in a truly high end system.