Hi!
IMHO:
@ $350, go with the Musical Fidelity VDAC II
@ $1,119, go with the Benchmark DAC 1 and Musical Fidelity V-Link; or the Benchmark with USB: $1,300. The Benchmark in either configuration is a top flight unit with a top flight headphone amp. It also is very flexible in terms of operation.
I would recommend that you also invest in a Logitech Touch, which would provide you with a very rich source of programming on Internet radio from around the world.