Should be a good choice, reading this review on amazon, I would be concerned about the rca line level input if it applies to you.....
Long Version: I bought the DAC1 to replace two boxes in my best stereo/TV system, an Arcam rDAC-kw (rDAC) and a simple stereo receiver which only provided headphone functionality. My integrated amplifier is analog-only and does not have a headphone jack. When the DAC1 arrived, however, I tried it with my secondary stereo/TV system. Playing the cable box thru HDMI to the Samsung plasma TV (model PN51F5300B, purchased this August) and thru optical cable into the DAC1, I noticed regular popping sounds very similar to the sound from an old vinyl record with a scratch on it. Testing ruled out bad cables, long signal paths, and TV or cable box settings (please use plain PCM stereo, uncompressed). The DAC1 worked fine with the Sony TV in my best system; no pops. Conclusion: The DAC1 is intolerant of something in this particular Samsung TV's signal. This was confirmed when I used the rDAC in its place. The sound is pop-free. Score one for Arcam! This Samsung model has factory fresh software, is totally "dumb", cannot be connected to the internet, and Samsung refused to send me a USB stick with a software update. Since the rDAC works fine with it, I'm OK. Time will tell if other users see this problem. (Try a software update of the TV if you do.) Since I hear similar pops when I pause or fast forward my DVR, my hunch is that the circuits for signal drop out and reacquisition are somehow in play when processing the Samsung's signals.
The second issue is that the DAC1's analog input expects a low level input (from a smartphone or portable player), and the headphone output is distorted when connected with my amp's "Line Out". I bought a "remote level control" from an auto stereo store, two male-to-male RCA couplers, and an RCA to 3.5mm adapter plug to get this connection working. Total extra cost, $40. Other headphone amplifiers out there have much better connectivity with amps. This is a design flaw in my opinion. Valuable real estate on the back panel that could have been used for RCA inputs rigged to accept amplifier level input was instead used for a Marantz external remote control hookup. This connection can only be of value for die-hard Marantz groupies or Marantz corporate executives showing off the DAC1 to big-money stockholders at a cocktail party. The Marantz design engineers missed on this issue, (or got overruled by their bosses).
The sound from the DAC1 is wonderful. I prefer it to the rDAC as the DAC1 has slightly stronger bass. I prefer my Primare CD player's sound to having it's digital output played through the DAC1, but there is no shame in that. Average quality CD players and probably 90% of blu-ray players playing CDs will see greatly improved sound with the DAC1 doing the conversion to analog. Ripping CD's to a computer and playing that through the DAC1 might perform even better, but I will leave the DAC1's performance with computers for others to evaluate.
Bottom line. The great sound of the HD-DAC1 outweighs the connectivity design flaws and hopefully rare source signal quality intolerance issues described above. I am happy with this machine.