Yeah, I'm just getting into using a media server.... loving being able to capture FLV feeds of ACL and the Sun Studio Sessions. Not HD, but probably 720P.
As for a DAC, I'm not sure what an external DAC has over my AVR. I'm running an NAD T775-HD, which is pretty well sorted. So not sure if you are into the AV realm, but if so, consider a good AVR. I run HDMI off the Media Server right into the AVR. Here's some info on the NAD....
The T-775HD includes the VM100 video module, the AM200 audio module, and a slew of digital and analog inputs and outputs, including one HDMI v1.3 output and four HDMI v1.3 inputs -- just enough for all my source components. There’s a rear data port for NAD’s optional iPod dock, and on the front a 3.5mm stereo phone jack that’s compatible with any MP3 player. The bank of 7.1-channel analog inputs on the rear can be connected to similarly equipped players. As well, 7.1 preamp outputs are available for connecting a subwoofer and higher-powered amplifiers, if desired.
Audyssey MultEQ XT room setup and correction are provided, with a twist. NAD has developed a custom, target frequency-response curve (the T-775 includes the standard Audyssey curve as well) to generate output response from your speakers that’s tailored to NAD’s preferences. The processing engine is a high-speed, 32-bit, 7.1-channel Aureus DSP chip from Texas Instruments. High-quality 24-bit/192kHz Burr-Brown DACs are used, along with 24/96 ADCs.
The AM200 includes Dolby TrueHD and DTS-HD Master Audio decoding, but adds to these three Audyssey products: Dynamic EQ, Dynamic Volume, and MultEQ Pro.
Audyssey Dynamic EQ maintains high sound quality as the volume level decreases. Normally, when you lower the volume, the bass response becomes nonexistent, a situation that many AVRs attempt to correct with modes such as Late Night Theater. Audyssey Dynamic EQ differs from such "loudness" controls by analyzing the audio signal and making adjustments on the fly to preserve the bass level in relation to the treble, this made possible by the T-775’s high-powered TI Aureus processor.