Do I really need a Dac?

when considering dacs in the $500 range, don't forget emotiva.

I suspect you will be absolutely shocked how much improvement you will get from a $500 DAC.

Rok2id,

"No you don't. DAC's are just in the middle of their 15 minutes of fame. It will pass."

No offense, but you must be new to audio. Separate DAC's have been very popular in the high end for well over 20 years. Also, your comment, "It will pass", is not likely to happen. If anything, just the opposite is true. Due to all the new formats that have appeared in recent years, the need for a stand alone DAC has never been greater; if not for sound quality, for compatibility, if nothing else.

The upside to all this, is a better listening experience. You should try one and see if you don't agree that its money well spent. The cost of a good entry level unit is quite low.

A new Benchmark HGC might be the answer, but I'm speculating based on their reputation and claims they're making for the new DAC. I know I'll get one ASAP.
$500 for a digital cable? Will all due respect, that's ridiculous in this day and age and with modern DAC's jitter rejection capability. One 4ft/2ft 2" thick sound panel placed anywhere in the room will make a much bigger difference in sound than the difference between a $500 coaxial digital cable and a $3.69 premium cable from monoprice feeding ones and zero's from a transport into a Benchmark DAC, or an Empirical Audio DAC/reclocker for that matter.

Zd542:

No offense taken. No, I am not that new, I am just more into the music side of things as opposed to the gear. Sometimes I get confused and say things that on retrospect seem strange. I'm confused because, if you look at the most expensive systems on this site, owned by the most experienced audiophiles, they all seem to play LPs thru Tube amps. Silly me, I thought that was vintage stuff. But, on this site it's considered the highest-fi possible. So, you can understand why I assumed that all this digital stuff was just a passing fancy. That's one of the reasons I have three of everything. I expect any day to not to be able to buy 2 channel ss amps or cd players. DACS: I will get the oppo 103 when it comes out. That built in DAC should hold me for a few years. with Blu Ray and SACD as icing on the cake. However, your entire statement is correct.
Cheers