DAC for entry level system

You right Mesch, although I hope to use the Squeesbox as the main source and not deal so much with CD's.

Foster_9, thank you for your input. I guess there is no short cut here, and I need to start to audition different level of DACs in my system.

Thank you Detredwings. I'm not familiar with the ODAC, and I'll read about it. At list it's good starting point due to the low price.
Thanks Darkstar1. It's interesting to read that the V-Dac was "competing" with the Rega that coasts more than twice.
I'll try to get few units and get a filling for what I should expect to get for different price level of DACs.

Thank you all for your comments. I think I got the answer that almost every DAC(that can handel files up too 24/196kes) will be better compare to the Logitech intrnal DAC. i'll have to try to listen to few units and decide which one to buy.

Thank you all for you responds.
Mesch, I want to spend around $500(need to buy digital cable and power cord). Yes, I'm willing to buy used unit.

Thank's Dragon1952. just one more question for you. Are you using the balance output or the non balance output of the Newave? Since I don't have balance input in my amp, I wanted to ask you if you checked both of them in your system, and if you found one of them better then the other one?
Thanks.

Thansk you all for the responds.
Tonyangel, I was just talking to a friend and he also sugested the PS audio DL III. Since it was originally relesed few years ago, do you still think that it's a good DAC compare to relativelly new units like Musical Fidelity M1-DAC that was sold here for $525?
Darkstar1, Good Idea to try the Z DAC at home. I'll read more about the unit. I'm planning to go this weekend to the T.H.E show in Newport, and I just saw that Parasound will demonstrate there Z line componants. It will be intersting to hear it.
Since I have solid state amplification, I also thought that a tube based DAC might be good idea. I never had tube equipment before, and I hope I'll be able to try it. I saw that the MDBT Havan was sold used for around $700, then I think it's above my budget.

Tubeears, :)
I'm not saying no to tubes. I need to try it.
Darkstar1, I'll definatly update when I'll buy the DAC. The Rega DAC is definatly one of the units that is intersting me.
Dragon1952, the Nuwave looks like a great product. The price that you mentioned is for new or used unit?