Stuartk, your choices are an integrated amplifier with built-in DAC or a separate amplifier and a separate DAC. I happen to believe that the separation of the integrated amplifier and the DAC provides the most audio performance and flexibility for future system upgrades and sound improvements. I had the same question for my 2-channel video system and decided to keep my integrated amplifier (Ayre AX-7e) and purchase a separate DAC (Prism Sound Callia DAC).
HOWEVER, from a cost viewpoint, the combination of an integrated amplifier with a built-in DAC offers some cost savings and other usefulness. This might be the "best solution" for you, based on your original post of this being your last one. In addition, as was stated above, you can always purchase another separate DAC in the future and use it and not the built-in DAC.
You need to review these comments and make a decision based on what is best for you, your budget and your audio system. In other words, you need to make a combination amplifier/DAC vs a separate decision based on your budget, one box or two box space limitations and audio system sound quality performance. There is no hurry to rush this decision since a mistake is expensive and very frustrating. Audiogon, and other similar Internet forums, are useful places for gathering opinions from others about your question. Other people opinions, may, or may, not be useful to you.
You are asking the right questions and I suggest you continue to research the topic until you feel comfortable with your decision.
