Im using sonos and wanted to know is there a good reason to use an external DAC. is their a preference for spdif or toslink.Something that won't break the bank would be good as i see alot for over $1000. Also if i was going into a good receiver then I guess their DAC would be fine?? Im going into a 2 channel analog system. Thanks.
DACs are like any other piece of audio equipment: they all sound a little different. You'll have to see if you can hear a difference and, if so, is it worth the price to you. A friend of mine was using a Benchmark DAC1 with his Sonos, and it sounded very good.
The connection method isn't terribly important. Actually, both Toslink (optical) and coax transmit a S/PDIF signal. Assuming everything is working properly and nothing is broken, the sound should be identical. Toslink has a more flimsy physical connection, but may be less susceptible to audio noise. I use both, depending on the connection, and have never had a problem with either.
If you're going into a good preamp or receiver, and you like the sound of the DACs on that device, then you will be just fine. I compared my old Outlaw 990 to the Benchmark DAC1, and I thought the DAC1 has a better sound -- more full on the bottom end, and wider soundstage. It was not a blind test, but levels were matched. It wasn't a huge difference, but it was audible.
DACs come at all price points, so you should be able to find one that fits your budget if you look around. I used to use a California Audio Labs DAC that was tube-based. I think I ended up selling it for <$200 on eBay or AudiogoN. It was a nice, different little piece.
Good luck!
