Moonshot,
Don't be surprised that people here give a lot of good advice to total strangers - that is what this is all about! Later, also remember to come back and share your knowledge with total strangers :-)
I've been using this forum to learn a bunch as I slowly get into computer audio. Computeraudiophile.com is also a great source.
My first step was getting a Squeezebox Touch, since it was just $300 and I had no dedicated computer. It allowed me to delve into computer audio, and learned how tweaking the Touch improved sonics.The DAC inside the Touch isn't great, though, so eventually was the time for a DAC.
Four months ago I got the Metrum Octave, which I really enjoy. My "strategy" is to work my way upstream: next get a USB to S/PDIF converter, then a computer and playback software, tweaks, etc. but if I stopped now it would still be the best sound I ever had at home. The USB to S/PDIF converter will likely be an Audiophilleo, as it's very highly regarded, runs on Linux (important with the Touch), and also runs in integer mode (important if going down the mini route later on).
BTW, you might want to consider just getting a USB>SPDIF converter and using it with your mini and Musical Fidelity M1 you inherited. Steve continuously says reducing jitter is more important than the DAC you use, and that converter is the one to reduce jitter. An Audiophilleo 2 with PurePower will cost you about $1k, is said to be up there with the best converters, and might be all you need for now. From what I read, getting "bit perfect" data stream out of your computer might be as important, so choosing the right software for your mini might be the second-most important thing to do. And maybe choosing a DAC is third, considering you have one already.
Sorry for the long-winded post. I hope it helps!
