The audio gd site does look kinda sketchy but they are good people.  They are also a sponsor for this website.  Albeit not the best performer, I still think its a solid dac/amp under $300.   Have you looked at the ibasso d12?  

http://www.audio-gd.com/Pro/Headphoneamp/NFB12/NFB12EN.htm   headphone amp with built in dac, has both optical and coaxial inputs        ibasso d12 http://www.ibasso.com/en/products/show.asp?ID=63

What kinda music are you playing?  mp3?  what bitrate?     p.s. the audio engine n22 is a speaker amp, you're better off with an actual headphone amp.  

I can't truely comment because I have not heard an a/b comparison between the two, so I'd have to refer to those who've had more experience.  I know it's not your card in the review but I still think the point holds true.   Here's an excerpt from a review for the Asus xonar essence stx (...

  Quote: not exactly in the same price range.  the xonar xense is 300, but comes with headset, its a dac/soundcard/7.1 surround.  The bifrost starts at 350 and is ONLY a dac.  I would imagine the bifrost outperforming the Xense when compared dac vs dac.  The lyr and bifrost is...

your post is confusing, but yes the burson 160d is more than enough for an AKG K701.   According to the AKG website, the MAX input power for the K701 is 200mW http://eu.akg.com/akg-product-detail-eu/k-701.html

http://www.monoprice.com/products/product.asp?c_id=102&cp_id=10229&cs_id=1022902&p_id=1557&seq=1&format=2   Toslink to mini plug optical cable

these aren't too bad either http://www.amazon.com/Polk-Audio-Two-Way-Bookshelf-Loudspeakers/dp/B000MGNDHE/?tag=vig-20 84 dollars, so it's just a tad overbudget.     Monoprice also sells speakers, so consider those as well.  I haven't read too many reviews on them...

so are we looking for just 2 speakers?  or do you already have active monitors and need something for volume control?   No offense but if you're dad is looking at a $1000 speaker system, then a 80 dollar set up with pale in comparison.  The improvised $80 dollar system would be the better...

Another suggestion -   Peachtree decco2 stereo amp with a pair of peachtree ps4.5 desktop speakers - $850 This covers your desktop audio setup as well as a dac for your headphones.    So $1150 left on headphones of choice.  Perhaps a separate headphone amp for more impact.

Quote: There's an Audioengine P4 which is passive and requires a separate amp, and theres a A5/A5+ which has a built in amp.  The A5 is suppose to be pretty decent and doesn't really require a subwoofer.  If its just for the computer and you won't even move them, then consider getting...

for actual speakers I would consider the PSB imagine mini or the Audioengine p4.  But you'd have to supply your own amp.  To keep within a decent budget maybe an audioengine n22.  Pic on top is the imagine mini and the one on the bottom is the p4.  Pics just for size reference.      ...

I just got these in and truthfully I'm a bit disappointed. Maybe I've been spoiled with my HE-4 or gotten too used to them that the ressessed mids on the tf10 seem really off to me. Like someone else has mentioned the vocals really do seem distant. I'm not sure if I'm not getting a good seal...

The point of an external dac is to bypass the macbook's or iPhones internal dac and use a superior external dac to convert the digital signal to analog.     Not all dacs are the same.  

I might be interested,  Depends on final location.   Prob gonna try to bring some schiit and a he-500 and he-4.