[persisting1]

I listen to my music off my computer and I'm looking for a DAC that will fit my needs.

I have the Usher Be-718s and want a DAC that I will be able to connect multiple sources to (xbox 360, TV).

I want to be able to connect multiple channels (3.1) to the DAC and be able to connect an amp (class D).

Looking for USB, multiple digital, balanced, connections.

Looking to spend under $1000 new.

Any help would be great.

[BradJudy]

As soon as you move from 2 channels to 3.1 (or more) channels, you're out of a regular DAC and into a home theater processor or receiver.  This also gets you the multiple inputs you want (although USB may require a USB->SPDIF device). 

For balanced outputs under $1k, you could get something like the Outlaw Audio 990 - http://outlawaudio.com/products/990.html

[sbrtoy]

PS Audio DAC Link 3 is a great choice, also many have had positive comment on the MHDT Paradisea though it is not balanced.  The Benchmark is also a nice piece but to get around $1k you would need to go used...

[WGH]

I agree with BradJudy, for movies and digital TV to sound its best 3.1 decoding should include DTS and Dolby Digital which get into the real of home theater processors.

Wayne

[sbrtoy]

You could also build a custom setup for as many channels as you like with something like this: http://www.twistedpearaudio.com/digital/opus.aspx

[BradJudy]

You could also build a custom setup for as many channels as you like with something like this: http://www.twistedpearaudio.com/digital/opus.aspx

You'd first have to decode the multichannel signal into multiple PCM signals.

[persisting1]

Are there any home theater processor or receiver that are more "musical" than others?

[persisting1]

Just came across this Musical Fidelity X-DACV8.

Has anyone had used this and what's your take on it?

http://www.stereophile.com/digitalprocessors/208mfx/

[BradJudy]

Are there any home theater processor or receiver that are more "musical" than others?

That's a whole can of worms with more opinions than products.  Some of the more traditionally audiophile brands have home theater products, but those tend to be $$$

If you're only doing DD/DTS and don't care about newer Bluray audio formats or HDMI video capabilities, then you might be able to get a deal on a used item from one of the higher end brands.  It looks like Parasound Halo C2's are under $1500 used.  There are used Rotel models for under $1k, but they don't appear to have balanced outputs.  

For new products, some of the more mainstream brands like Marantz, H/K, Pioneer Elite, etc might be good options.  

Then there are the internet-direct companies like Outlaw and Emotiva.  Both are transitioning to new models to support the new audio formats.  In the case of Outlaw, that means there are some deals on their current inventory.  In the case of Emotiva, they only have one model in stock until they get the new models in.  

[sbrtoy]

Why not just do a PCM feed from DVD's? If surround is not a priority a standalone DAC can make the PCM feed sound very good. I run a two channel system with a PS Audio DAC3 and a 100" screen and most who hear it say it sounds better than any normal mass market 5.1 system.

[EDS_]

Just came across this Musical Fidelity X-DACV8.

Has anyone had used this and what's your take on it?

http://www.stereophile.com/digitalprocessors/208mfx/

I use one everyday and really like it a lot.

Here is what  I know about it.....
Mine came with cool Jan/Philips NOS 6922 tubes
The "tube" output really does add about 1 db of output
It's got 3 coax SPDIF inputs and one USB 1.1 input
It's got 1 coax SPDIF output that is a pure digital pass through from the coax inputs and it does pass USB through this coax out if needed
It is great at taming known jittery sources like the Apple Airport Express - and MacBook optical output converted to coax via a cheap converter (this actually sounds really great)
It's got a lot of drive
The manual states that the DAC uses Delta Sigma modulation and that the USB input is asynchronous
I cannot find out if the unit converts USB straight to I2S or USB to SPDIF to I2S

The bottom line is the unit is exceptionally functional and it sounds great in my system.

[WGH]

Why not just do a PCM feed from DVD's? If surround is not a priority a standalone DAC can make the PCM feed sound very good. I run a two channel system with a PS Audio DAC3 and a 100" screen and most who hear it say it sounds better than any normal mass market 5.1 system.

Agreed, once in a while I forget to turn on the amp for the rear surrounds and never notice the difference.

The OP said 3.1 which I assume to mean he has a center channel, to get the dialog in the center would necessitate using a Dolby or DTS processor. The separate sub-woofer channel can really lighten the load of the main speakers, some movies really like that low frequency thump.

As for audiophile quality home theater DAC's, Anthem comes to mind. You can buy older used processors on Audiogon for $1000 or less but they won't do the latest Blu-ray decoding. Though I have never heard one of their DAC's, I own an Anthem pre-amp and amp and they are very smooth and grain free. The units I have are not the last word in resolution but if your speakers tend towards the bright or lean side of neutral they would be a great match.

Wayne

[persisting1]

Why not just do a PCM feed from DVD's? If surround is not a priority a standalone DAC can make the PCM feed sound very good. I run a two channel system with a PS Audio DAC3 and a 100" screen and most who hear it say it sounds better than any normal mass market 5.1 system.

This is something I am considering.

I have a center channel that I'd like to use, but it's not a necessity.

[PhilNYC]

Why not just do a PCM feed from DVD's? If surround is not a priority a standalone DAC can make the PCM feed sound very good. I run a two channel system with a PS Audio DAC3 and a 100" screen and most who hear it say it sounds better than any normal mass market 5.1 system.

This is something I am considering.

I have a center channel that I'd like to use, but it's not a necessity.

If you're willing to forgo the center channel, it opens up a lot of DAC options (any 2-channel DAC becomes an option).  However, note that if you've got a cable/satellite box, a lot of them aren't able to send PCM thru the digital out (many are stuck in some kind of dolby digital format), so you may want to check to see if yours does nor not.