DAC with volume control under $250

A used Sony SDP-EP9ES would do the trick.

My friend has ordered the Emotiva which definitely did fit the budget. Even shipping was included in the $249. It's on its way to him now.
Thanks again.

That's great. I considered getting one myself to use the balanced outs into some amps I have, but will probably just get an all in one integrated instead to save space. Please be so kind as to update us with some listening impressions when you have a chance. I hope your friend enjoys it. Seemed to get a lot of positive feedback on various forums, especially for the price.

I'll do my best. Probably I won't get to hear it, but I'll post his impressions.
We both "owe" this to those who helped us in the search. ;-)

I don't know about "owing" but I'd gladly thank you for those impressions. I have a buddy looking in the same price range and I'd probably just forward him the thread if your friend has a favorable impression. :)