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Here's my new setup ::
for DVD or Game : iMac -> TOSLINK -> iBasso D1 -> Headphile BlackSilver Mini to RCA cable -> audioengine 2 -> Monster Cable Z2 Reference
When I watch movies at night, I need to use headphones. D1 have a headphone jack. It's a headphone amp w/DAC, of course.
for iTunes : iMac -> USB cable -> SUPER Pro DAC707-USB -> TARA-Labs Prism 3 RCA cables -> WooAudio 6 -> Grado SR-225 Headphile Zebrawood Mod with BlackMax cable
For desktop systems, I'm a fan of computer --> dac --> tube headamp/preamp --> active monitors. You can see what I'm running now in my sig and I think it'd be hard to do too much better for the same money.
That said, I'm itching to go fully balanced and I think the next level (while remaining somewhat in the realms of fiscal sanity) would be something like: iMac --> Apogee Mini-Dac --> Little Dot Mk VI --> balanced headphones of choice --> Adam A7/Dynaudio BM5/Mackie 624.