I have a Omegastar DAC.I tried few other exsternal DACs with 1050.Really there is not much significant difference.I connected Omega * DAC directly to the 5-channel in put with RCA cables.The DAC of 1050 is more than adequate.

I feel any equipment we buy- we should be able tell the differences with a double blind test.The purchase should be at the point where the rapidly diminishing returns for the dollar begins.

The only equipment which passed this test with me is an external amplifier add on.Any good amplifier such as 750, 755, AVA(avahifi.com) etc will do.
Though the quality of mid range & high frequencies is very good, comparable to receivers costing twice or more than the cost of 1050,the significant improvements are in Bass, hearing subtle sounds, their micro dynamics and wide sound stage.

The low cost 350$ Ed frias DIY speakers passed the double blind test.

If you add a external amplifier, for cheap thrills, nothing beats the Dynaco Q2 passive surround sound processor.At 39 dollars it is cheaper than many cables.
V.R. Sola