The Airport express is really inexpensive but it doesn't offer a control interface. You could use your lap top with the airport express at the listening position for that. A squeeze box might be a bit better as far as set up options and future flexibility. DAC's might be a bit overkill in this system. I'd recommend starting without one, then add one latter necessary.

Squeezebox's DAC is nothing write home about, but it ain't half bad either. If you don't have a particularly revealing system, I suspect it would be fine. Then when you have some more $ saved up, you can get a standalone DAC, and run SB through that. And you'd have a top-rate digital solution.

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Squeezebox's DAC is nothing write home about, but it ain't half bad either.

I'll second that. I would start there. There are many who find it more than adequate. Check Ebay for deals on new in the box units.

RG