Do DACs break down less than a CD player?

DACs have no moving parts, unlike transports, so they're unlikely to break down.

However, you still need a transport to play CDs with a DAC, so I don't see how a separate DAC is going to significantly lower the chance for break down of your CD playback system. I believe the Sony DVP-7700 ES is considered one of the more bomb-proof DVD/CD players, and it makes an excellent transport for not much money.

Of course, with a DAC, you have the option of using computer (hard drive) audio.

Thanks Tvad for that smart reponse - I will definitely look into using the computer as the source.

What's a good component to get the signal out of he hard drive? What soundcard ? Would you happen to know?

I use a Mac, iTunes and a Squeezebox. There are many other alternatives, but I'm not very familiar with the PC options. Mac keeps it simple.