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So basically as the title says I'm looking for a good DAC around the $200-300 range to pair with my DT880's and a DV336SE. I have been thinking of getting this:

but without the USB card and buying a sound card that has a S/PDIF out.

I don't want to spend more than 400 for the soundcard/DAC combo though. Would this setup work well? Or is their another DAC that I should go with that is more in my range?