Just me, but I would guess 5V means it has something to do with USB power levels.
LM317 circuits are documented all over the place. Avro_Arrow implemented one for our DoodleBug device. The schematic is here:
http://diyforums.org/Doodlebug/schematic/DoodleBugSchematic.png
(Look at the top of the image for the "POWER" section.) Avro changed things up by using LEDs to drop the controlling voltage set on the LM317, for both more linear and quieter effects. It definitely gets down in the double-digit microvolts of noise, perhaps even single digits.
What's more important, though (IMHO), is to adjust the voltage output so that it takes advantage of the USB spec's voltage range, meaning adjusting up to 5.25VDC. Many USB-powered DACs have internal voltage regulators, but even LDO (Low Drop Out) regulators need to burn a little to give a little, so an extra bit of voltage on the incoming side ensures that the DAC's internal regulators have plenty to burn to maintain the regulation. The regulation, after all, is what is really removing the AC noise.
As for power source, there's no need at lower current ratings (500ma and less) to use a big, complicated toroid and messing with mains wiring. An AC walwart (about 6VAC) or DC unregulated (as opposed to switching) walwart (9VDC or more) will work fine.