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Unfortunately most quality, inexpensive DACs that would fit nicely into your budget are USB input only, but I can recommend the Schiit BiFrost ($349, upgradable).
Hello, Stuart.First off....welcome to AC!Funny you should mention the D7s. I just heard them for a few minutes this afternoon at a dealer in Portland, OR. I only listened for a few minutes, but they sounded quite nice. They have that warm British sound that is often heard in the Harbeths, Proacs, Spendors, PMC, etc. the D7s are able to reach for a bit lower bass thanks to the passive radiator below the mid woofer.I didn't have time to stick around for a good listen, but it was enough to know they're pleasant sounding speakers.Michael
Hello, Stuart.First off....welcome to AC!Funny you should mention the D7s. I just heard them for a few minutes this afternoon at a dealer in Portland, OR. I only listened for a few minutes, but they sounded quite nice. They have that warm British sound that is often heard in the Harbeths, Proacs, Spendors, PMC, etc. the D7s are able to reach for a bit lower bass thanks to the passive radiator below the mid woofer.I didn't have time to stick around for a good listen, but it was enough to know they're pleasant sounding speakers.Just prior to the D7, I got to listen to Focal Scala V2 Utopias powered by top of the line SimAudio equipment and the Auralic Vega DAC for about 30 minutes. If only I had $35k sitting around (just for the speakers!)....those speakers sound amazing.On to your bedroom system. The above suggestions are excellent indeed. I can't fault any of them. Nonetheless, I'd like to throw out a couple ideas:Have you thought about using powered speakers? The first that come to my mind are made by Vanatoo or Kanto (sp?). For about $500 you get pretty decent sound from speakers that plug right into your computer. If you desire better sound, there are self-powered studio monitors that easily get into the over $1000 range. I have not compared these, but I have looked into them in the recent past since I sometimes wish for a bedroom system in a vacation home. Most of the brands have run off out of my brain, but Adam, KRK, Genelec, Neumann, and Focal seem right. There are many choices in the sub-$2000 level.Have fun researching possibilities. I sure do when I'm looking for this or that component.Michael