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[pfc]

I was going to purchase a Juli@ sound card for my xp computer, but with all the good usb dac's on the market, I'm not sure which one would give me the best sound for the price. I'd like to spend under $500. The usb would give me more flexibility in the future, but will the sound quality be as good?

[erniemit]

connect your PC to the DAC via optical cable.  I have a cheap X-Fi Audio extreme sound card with an optical digital output that plugs into a DAC Magic by Cambridge.  The older DAC Magics can be had for about $300 since those inventories are replaced by the DAC Magic Plus at $550 plus.  The DAC has dual optical inputs, so one can come from the PC and the other one from your disc player.   I found that having an external DAC was the greatest investment in sound quality I have made in a long time...the $200 CD player does not have a $400 DAC inside, and neither does an $900 receiver. 

[pcstockton]

the $400 DAC doesn't have a $400 DAC inside....  using your logic.  It still has the same $10 chip that is is the receiver or DACMagic.

The most flexibility would come with a well regarded sound card and whatever DAC you like/can afford.  The USB DAC, unless it had other inputs, does not really offer you any flexibility at all.

I HIGHLY recommend the Naim DAC.  Worth every penny.

For a little less I would get the Rega DAC (has USB but not solely and I would use other options if i could)

For a lot less I would get a Musical Fidelity VDAC II (has USB but not solely and I would use other options if i could)

-Patrick