Apple TV is an even less expensive option than a Squeezebox as it will stream all your iTunes music, though you would need an iPod Touch, iPhone or iPad to run the remote control software. (So that might make the cost a wash with Squeezebox.) If you can't afford an external DAC, the one that comes with it is acceptable.
I use a Cambridge DAC Magic with mine and the quality is superb.
I use a Cambridge DAC Magic with mine and the quality is superb.