Some History:

Hi, I am new to the world of Audiophilia, it has only been a few months since I picked up Stereophile. I was at a Chapters (book store) trying to find something to help me fall asleep, when I came across Stereophile. I was looking to buy some speakers for my computer, so I decided to grab it. Within days I was launched into a world of tube amps, vinyl and crazy $10,000 wire. Rest assured though it is a world I have come to love. So it wasn't long before I bought my equipment, nothing fancy (I am university student), a pair of PSB Alpha B1s and a NAD 325BEE integrated amp (w00t Canadian Combo, kind of like Poutine), I am using my computer (currently onboard audio) and an old DVD player I have, for playback.

The Dilemma:

It is just about time for my oh so needed next upgrade. Logically I need to improve my source of audio playback. My problem is universal, Analogue Vs Digital, CD/SACD vs. DAC/Computer, Squeezebox? I was hopping you could help me make my decision, adding insight and info I may have over looked or not come across during my researching. My budget is entry level, low, around $500 it is flexible but the more frugal I can be the more money I have to actually spend on music (and food).

My options (you are welcome to add more):

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