Is there a qulaity DAC that has USB and coaxial.

With a $3k budget, I'd add the Antelope Zodiac+ DAC to the list. And you get a headphone output and amp as well, if that is of interest to you. Sweetwater and elsewhere have a 30 day return policy. Depending on features you could also wait for the non-plus Zodiac to come out, but it is limited to 24/96 via USB, as opposed to the 24/192 of the +.

If you happen to have a Firewire output on your computer, the Weiss DAC2 is $3k.

Now that you mention your budget, perhaps PS Audio PWD could be a possibility. Please note, though, that it's a full sized component in width and depth at around 17". Not sure if form factor is an issue as opposed to physically smaller units such as those mentioned above.

Just noticed this thread. I'm surprised nobody specifically mentioned the PS Audio Digital Link III. It has both coax and USB, sounds great, and is really easy to use. I personally like it better than the W4S Dac-1.

there are certainly lots of options at your budget, but i'll also recommend the Wyred 4 Sound DACs. i prefer mine over the Weiss Minerva it replaced. don't let the relatively low price put you off - the wyred dacs are fantastic. the $1500 you'd have left in your budget would buy a lot of music!

Second the vote for W4S DAC2. This is the real deal and is a screaming bargain. Has every input you could want and they all work well, regardless of source. I have lived with this DAC for 5 months now and continue to be impressed. I can afford almost anything out there but see no reason to throw away $$. Only downside is that it is pretty dowdy looking, but what a personality!

Neal