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Thanks all for you advice(s). I have a better understanding of my options and now need to test some equipment. I'm sure once I begin to upgrade, I will end up openinng my wallet more (then I had hoped) to get the sound quality I'm looking for.

Eloise asked what I'm trying to improve. I have a issue with the Denon losing connection with the network. I've done alot of resreach and it seems this is a problem with this model. Other owner are having the same problem. The only way to reconnect is to turn the unit on and off. Also I'd thought by upgrading the dac, I would greatly improve my sound. Seems Jim thinks I need to add a sound card and dac to get a improvement in sound. I thought I the card would do by itself. I do understand Jim's point. However, Eloise states that Shiit BiFrost DAC would be the best way to improve the sound quality. Again, this is why I asked the question. Can a usb dac alone greatly improve the sound quality of my system? PS Thanks for all your opinions. I think this is a more difficult question then I thought.

Hears the back ground on the computer. No it does not have a "coax" connect. That may seem odd however, this is a custom built CAD workstation that's only about 3 1/2 years old. At the time it was built it was only being used for CAD so no sound card was added and the only output is optical that is built into the motherboard. It is a well built system, just not set up for multimedia. That brings us back to my original question. Should I add PCI card or purchase a usb dac. If the sound quality is the same the usb would be more flexible to move to another system. However if the sound quality would be superior with the pci card, I would choose that. Trying to stay under $500. Last i looked the Juli@was under $200 and received good reviews. I would be willing to spend more on a usb dac because I could use it with a laptop or maybe a all-in-one computer in the future.

I'm using J River software (windows xp) connected (ethernet cable currently) to a Denon 3808C receiver. My speakers are NHT Classic Fours bi-amp using 2 A1 amps and x2 crossover. Would like to keep the DAC under $500. Its about 20 feet from my computer to my receiver.

Orignally I was thinking of adding Juli@ sound card to my desktop computer, however there are so many good usb dac's now, I not so sure which way to go. Looking for advice. I will be running a 20' coaxial cable to my audio system.