Yes this is what I was hoping to do. Do you think the onboard dac on the new bluesound node is as good as an external dac or is the sound only as good as the weakest link?
I have no idea. I've heard a lot of DACs but I have never listened to a BlueSound Node. External DACs are not necessarily better than an internal DAC. In my view, the chipset information tends to be the key driver in my selection criteria. I have a particular liking for any DAC that uses ESS Sabre chipsets. They just sound good to me. However, what sounds good to me may not sound good to you.
As with any system if you have a weak link, regardless of what component is compromising system performance, nothing will sound good to you until you deal with the weak link. Obviously a DAC is one component that can compromise sound quality but then again, it is not the only component or accessory that can affect your system in a similar manner. Love it or hate it, you do have to try out different components and accessories to tweak your system to your liking.
If you had an external dac it would bypass the internal dac? Would that make an improvement? 'if so which external dacs would be suggested?
Yes, an external DAC will bypass an internal DAC as long as your digital sources are plugged into it and not plugged into the component that you were using to decode the music.
It may or may not make an improvement. Only your ears will tell you if the sound quality has improved. As far as a recommendation you'll have to continue to peruse the digital section here for posted reviews. At the end of the day, though, you'll have to listen to some DACs to make a choice. I went through 5 DACs before I heard one I really liked.
My suggestion is to go listen to some gear. If a shop is willing they can swap in DACs or other components and demo them for you using the same source and media so you can do a comparison. But I've found that previewing gear in your own dwelling works much better.
Good luck.