[Maceo23]

I want to build a music server around my Apple TV without breaking the bank.  I'd like to get a decent dac for it without having to spend $500 on it.  Any recommendations would be very appreciated.  I'm willing to go used to save some dough.

[wilsynet]

Audio GD NFB-3 or NFB-2.

[ssglx]

Easy, very easy. Musical Fidelity V-dac. It sounds wonderful. So much so that I just bought a 2nd ATV in case the first one shoots craps.
I couldn't bear to be without this little system.

[bretth]

It's a bit of a bulky item next to the apple tv but there is no better value dac than the nfb-3. Having owned both, there's not much point in getting the nfb-2 unless you're using a more refined source than the apple-tv. Using a digital dock I was struggling to tell the difference.

[pearsall001]

Canbridge Audio DacMagic...paired up with my Sonos system it sounds incredible.

[Russtafarian]

Michael Mercer wrote an article on this exact subject for the Daily Swarm last month.

http://www.thedailyswarm.com/swarm/sonic-satori-mini-system-grows-and-turning-your-appletv-music-server/

Russ

[mr_slim]

Have a look at the new EMU 0204, if you are good with USB only connectivity.  It uses the same DAC as the 0404, and sells for around $125 on Amazon.  It will do 24/192 out via USB on OSX and Linux(USB 2.0 Audio compatible)