N00b, recomendations... cheap, good DAC w/ S/PDIF

Hello all,

First post on Audiogon and Im hoping some of you audiophiles out there can help me. I am just getting into the audiophile thing and dont have the killobucks some have to drop on a system so I piece my system one step at a time.

Currently I am in the market for a good, cheap DAC.

My system consists of a couple Magnepan MMG's, a Mitsubishi DA-A10 amp, and will be purchasing an Emotiva Preamp.

I would like to set up my system to stream music from a central server being fed to my Hacked XBOX w/ XBMC. Using optical out feed that to my system. This will allow me to use an internet tablet to control the system through XBMC's web interface.

The DAC's I have been looking at are extremely expensive and I am hoping some of you will have some recommendations on a DAC that wont cost me +$1k, ideally Id like to keep it at $500 or less, but $1k is my tipping point.

What I need:
Good quality sound
S/PDIF input

I would prefer any system that offers XLR Output and USB input as well, but those are not necessities.

Any opinions or help would be greatly appreciated.
You have some options on this list however, I think buying a really inexpensive DAC just leads to purchasing another DAC shortly down the road. Look for the more pedigree DACs used on the GoN.

Benchmark DAC1
Wavelength Proton
Stello DA100 Signature DAC
Audiophile Products Fubar IV Plus DAC / Headphone Amp
Cambridge DAC Magic
I use this and it works wonderfully. Comes in at $600.
Have obtained good results using the Citypulse DA-7.2X with chip upgrade.I believe these are up to $469.Check out Audio Magus.They offer a return policy,as I understand it.
I use a Monarchy M-24 tube DAC...around $700-$800 used. You won't need the Emotiva Preamp because the Monarchy has a very good tube preamp you can use.

No remote though?