How would you improve the sound of Squeezebox?


I just set up a NAS music server with Squeezebox Duet. The convenience of accessing all my music collection is really a great thing. Now the question is, how would you improve the sound of the Squeezebox digital output? I heard people say that SB's outputs digital signals with much jitter, so what DAC's(~$1000) would you use to reduce the jitter? i.e. what DAC's has the better ability to handle jitter? Any other ways that you can improve the SB's SQ?
amaggie05
I use a Squeezebox 3 with a Lavry DA-10 external DAC. I auditioned a Transporter and couldn't tell much, if any, difference. I went with the SB3/Lavry combo and have been extremely pleased with the combo. It costs less (about 60% of the Transporter) and I like the smaller footprint of the SB3.
I'm using a Benchmark DAC-1 with my Squeezebox. I also feed my Oppo 980H digital out to the Benchmark. Another option, if you still play CD's a lot, is to get a higher end CD player that has a digital input.
Transporter is a good route. I have a SB, a Transporter and until last week a Rega Apollo. The SB was about 85% of the Apollo's sound quality while the Transporter was in between the two.