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.
Funny-my squeezebox with CI power supply, Sunnyata Hydra 8, Shunyata Python Vx Alpha and Tara Labs Rsc Air one (and nordost digital) absolutely blew away the Rega Aollo my buddy bought over. I guess the SB peripherals have a bit to do with things.