Starting Out in PC Audio

Sorry for the basic questions: I'm an old time two channel rig guy, tubes, the works. This PC stuff is a bit confusing
so. Here is my idea, I thank you in advance for advice.

Budget of $1000.

PC will be Win 7
Files are all in FLAC

My thought is buy audioengine 5 speakers
hook them to pc with good rca's (anti-cable?)
use a usb D/A the HRT-2?
Foobar for player

Would this work and sound decent?

Any thoughts very appreciated, would like to keep it at about 1000.

mlapenta is a great resource.

I think they recommend J River as the best Windows player right now.
I think the typical set up is usb out to dac, rca from dac to amp. Not sure what you had in mind - where is the pre-amp in your plan.? I assume the audioengine speakers are powered so they have the power amp part. The computer sound card as a pre-amp is not a great idea.

I'm a mac guy so I don't know about software, but the moon 100d dac is nice (I have one), also PS audio makes a good one for about $800.
I'm planning on powered speakers.
Mlapenta...the configuration you have spec'd will certainly do computer audio, as to whether it will sound good, I cannot advise since I have never heard the Audioengine active speakers and you have not stated which DAC you are thinking about using. But it's certainly doable the way you have configured it. Do you want to keep it localized to your PC (I am assuming that is why you are thinking of the Audioengine active speakers) or would you like to integrate it into your main rig through your main speakers? In the latter situation, you can use something like a Logitecg Touch as music server that streams files from your computer into the DAC of your choice into your preamp through your main system. You can do this wirelessly if you have a home network already setup or through a wired connection. You can download an app to run the Logitech Touch using an iPhone or iPad as a remote control essentialy. Hope this helps.
this setup would be for pc area only. as far as DAC still doing research on DAC's below 500. the whole 24/96 also confuses me. thanks
24bit/96Khz audio is digital audio files sampled at a higher sampling rate (frequency 96Khz vs 44.1Khz redbook) and bigger word size for data (24bit vs 16bit redbook). Typically DVD-A discs and a few web sites have 24/96 files. You can rip DVD-A discs and get the hirez music files. You get more audio information compared to redbook CD. Many/most DACs can handle 24/96 PCM. And there's even a smaller niche of 24/192 music files.
Just buy a Squeezebox Touch.
I second the squeezebox.Got mine last week and have no regrets.