Suggestions on using a Roku w/external DAC?


I'm a big fan of my Roku boxes(non-Soundbridge versions) for streaming music. I specifically use Panadora and love the flexibility of creating new stations. I'm finding that 95% of my music listening has now transitioned over to Pandora from traditional CDs and FM. I have less time to sit down to critically listen and enjoy my collection and the Roku/Pandora combination is filling my desire for variety and discovering new artist. I've upgraded my Panadora account to Pandora One which streams at 192K bits per second(not a techie, so I don't know if that's very good or not). I'm looking to improve the sound even more since I can't imagine the internal DAC of the sub-$100 Roku is a strong feature.I figure an external DAC would really open up the music. I'm heavily eyeballing the Cambridge Audio DacMagic because of it's many features, mostly positive reviews and the low cost. Anybody using the Roku w/an external DAC care to comment on the improvements or non-improvements it made? DAC suggestions(has to be Toslink)?

I have no experence with the DacMagic, but I have seen it described as getting "long in the tooth." There are a number of great new DACs being released, and bang for your buck continues to get better and better in the DAC world.