The renewed interest in DACs stems from the growth in usage of stored or streamed music. Way back when the CD player was a youngster, the DAC quality built into them left much to be desired, so add-on DACs were all the rage for quite a while. Then the general quality improved, and DACs fell off the radar for a while except in high-end systems. Now that people are taking an interest in their music quality from their stored or streamed off the net sources, the DAC is once again a must-have item.

We have a big range of DACs, from this level all the way up to the Berkeley Alpha at $5999. What you need will depend on the level of gear you have and your aspirations for ultimate audio quality. It's certainly true that the number of people wanting a DAC for around $500 will always be greater than those wanting and buying the high end ones, but in this case the same guys who have access to all the top gear have given this little DAC.iT the thumbs up. Computer Audiophile were mightily impressed with it:

The sound quality available through this DAC may fool even the most knuckle dragging, card carrying audiophile in a short term blind or sighted listening test. I encourage readers to find another DAC of this quality anywhere near this price. The DAC•iT is not for listeners who require analog input(s), balanced analog outputs, or volume control. The DAC•iT may be the component of choice for readers seeking a low cost, high performing, overachieving DAC from a company created solely to meet the needs of computer audiophiles. The DAC•iT is highly recommended.

Selling for not much more here than it does in the USA, this little DAC has no bells and whistles, but does everything most people will need it to do.

Inputs & Sampling Frequencies

•USB -> Supports 44.1, 48, and 96 kHz. Does not support 88.2, 176.4, or 192 kHz.
•TosLink S/PDIF (optical) -> Supports 44.1, 48, 96, and 192 kHz. Does not support 88.2 or 176.4 kHz.
•Coaxial S/PDIF (electrical) -> Supports 44.1, 48, 88.2, 96, 176.4, and 192 kHz.