[Orb] audio quality - outboard DACs

Question: Is anyone running digital outs from DVD or multi player to outboard DAC? This seems to be widely popular solution to high end audio on a budget. I'm curious as to what results anyone's getting. My beloved OLD Nak's drive motor is on fritz, so I'm thinking either fix it or get outboard DAC for DVD deck (which is Toshiba and has horrid CD sound, and not much better DVD sound). TIA, T