I use a 'Touch into a Dacmagic using the coax plugs. Amazingly great sounding in my system, much better than the 'Touch alone...and the Dacmagic was around $300 used.
Squeezebox touch sounds better than benchmark dac1
Atleast on my system, the squeezebox dac sounds less harsh and has more body. The system consists of Dali Helicon mark 2 and mf nu-vista m3 integrated. Now i'm looking another dac that gives me significant improvment in sounds without the brightness of the benchmark. Any recomendation beside the w4s dac2?