What do we think of the Berkeley Audio Design Alpha DAC.
http://www.berkeleyaudiodesign.com/products.html
The Berkeley is an excellent DAC, but far outside the budget of the OP. It is also best when when as both a pre-amp and DAC and requires a pretty serious computer setup (including expensive Linux soundcard which is around $800) to sound its best.
For a more musical DAC I would HIGHLY recommend the Weiss DAC2. It is the pro version of the Weiss Minerva (different faceplate and feet). You can find many amazing reviews of the Weiss. It is a Firewire DAC and also has S/PDIF, Toslink, and AES/EBU inputs. It is one of the few DACs capable of 24/192 resolution. Beyond that it has the most glorious midrange I have yet to hear on a DAC. Unfortunately, at a little over $3K retail it is outside the OP's budget.
TJHUB, you may want to try the Bryston DAC? I know quite a few people who enjoy it and it fits your budget. Plus you can buy it from Audio Advisor with a 30 day full money back trial