If, as was stated earlier, you're going to bypass the 1070's DAC, I can personally recommend the Cambridge Audio Azur 640C. It is now in a version II iteration and can be had for around $600 online. Apart from that, and in the same price range, I hear Music Hall has a loyal following.

Beyond that price point, you may want to pursue the approack Jason J mentioned: get a good transport (or a CD player with a decent transport), use the 1070's DAC in the short-term, then get a really good DAC like the Benchmark DAC-1: http://www.benchmarkmedia.com/.

If you're not into SACD and play a lot of Redbook CD like I do, that would be a great long term strategy that would give you a digital front end that would compete with players in the mega buck range.
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Outlaw 970
McCormack DNA-125 (mains), Emotiva LPA-1 (surrounds)
Quad 11L (F&C) Wharfedale (R) LFM1 (Sub) w/ SMS-1
Squeezebox -> Behringer SRC2496 -> Musiland MD10 DAC
Sota Sapphire; Marantz 10B;
Video: Hitachi 42HDS52A; Oppo 971H
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