Best DAC for CD redbook playback from a PS Audio Perfectwave transport


I just purchased a PS Audio PWT and will use it to listen to redbook CDs. I've read that the best playback is with an I2S hdmi cable. So, a suitable dac would be one with an I2S input, such as either a Wyred4Sound dac or a PS Audio PWD. But, if it's just for redbook CD playback, can I suffice with an older MK1 version or do the updated versions (which I presume are primarily geared toward improving computer based systems) also significantly improve CD SQ? Again, it's just for CD playback.
tweaknkeep
Thanks stereo5. Yes, I've read that I2S is the best. But, considering it's only for CD redbook, is it worth splashing out on the latest version dac with and I2S input (even a PS Audio Directstream), or is it wasted money? (e.g. just buy an older version used)
For what it's worth, I'm so happy with my PWD II that I have no yearning for a Directstream.  I'm using the Bridge II with fantastic sonic results, but the Perfectwave Transport hooked up by I2S should be just as good.
Thanks cymbop. Yes, it seems as if the PWD II is the way to go. Directstream, I'm sure is better, but for the money, PWD II feels right. Anyone have any experience with hdmi cables?
Okay, now it gets more interesting. Metrum DAC (without the I2S connection) vs PSA PWD MkII? Anyone know (for CD playback)?
I have the PS Audio PerfectWave transport and DirectStream DAC, with a PS Audion I2S (HDMI) cable, and it’s the best combination I’ve auditioned.

I have had the DirectStream DAC now for about 18 months and am really impressed with the detail it extracts from CDs, even better when I added the transport (my latest acquisition).  The great thing about that DAC (besides the quality) is that updates are made available on a fairly frequent basis, each one of them has improved the performance.  Thoroughly happy with both products.

On the advice of one of my audio buddies (retired electrical engineer), I also purchased a PS Audio P10 power plant, "power regenerator".  When I added the P10, I noticed an immediate improvement in the performance of the DAC.