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NO DAC??!!
I'm not aware of any DAC's in this price range other than products like the Squeezebox which are a different type of component. There may be some however.
For $500 I would look at used DAC's if you already have a transport.
If you are thinking new transport/DAC, I would put the money toward a good one box player such as the Rega Apollo.
Two of the best "Value" DACs....
Citipulse DAC
Liteaudio DAC-60
RG