If you just want to try it out, just go for the AE unit on its own first. I have mine go direct into a pair of Epoz Actimates in my office, no DAC and it sounds great. I'm positive I can improve it with another £100 - £200 on an external DAC, but that's a tweak I can add in the future. Much like Hi-fi, these upgrades can be done in stages. If you're like me, before you know it, you'll have 3 AEs round the house and, using your iPod Touch, you'll be streaming lossless music all round your house at the touch of a few buttons!