The Outlaw has very good quality sound for cheap.
Has lots of inputs including USB.
Great Headphone jack.
Pre-Outs to add a bigger amp later.
FM Tuner is supposed to be very good sounding and recieves well.
Id get a good Dac and use an inexpensive cd player as a transport so you can also use the dac on an ipod doc or pc/mac etc.
Musical Fidelity V Dac is under $400.
Cambridge Magic Dac $499
PS Audio Digital Link 3 $699
Look in the Dac and Source thread on HeadFi.
Audio Advisor has many good deals. You can almost build your whole system right there.
Also check out Head-Fi sponsors sites. Alot of good sponsors here.
Im going for a dac over a player because im afraid ill build up a cd collection and theyll stop making cd players. I started with records, went to 8-track, cassette, then cd came out, then mp3 players.....OY!!!!!!