Thanks everyone, I will try to sort through all the suggestions, it's all a bit overwhelming. I had to actually look up what DAC was. Seems to be varying opinions of what route to go.
I have one more suggestion - Carnegie acoustics is selling their Pedestals floor standing tower speakers at a huge discount - speakers that normally sell for $3000 are being sold for $1000. I have another model of their floor standing speakers and I can highly recommend them. Fit and finish is very good and they sound significantly better than other mass market speakers.
These speakers are designed in collaboration with Danny Richie who sells quality speaker kits through his company GR Research. Many members in this forum imported his kits (an initiative led by captain rajesh of this forum) and I believe they have had very good success with the speakers.
Another thing to note is that these speakers will suit well with an av receiver, and I do agree with Stevie's comment that an av receiver would actually be better suited for you. It may not have the absolute best sound but will have the features and convenience you need to play internet radio or from a external hard drive. Paired with decent and easy to drive speakers such as these, you will still get good sound, in my humble opinion. A local audio store should be able to sell a good quality av receiver with the features you need and hopefully forum members can also suggest appropriate models. I am not too familiar with the models though. You will also have plenty Of money left over for a quality receiver.
Here's Danny's thread on the speaker sale. You can call him directly to buy the speakers and he will ship the speakers to you.
Huge liquidation sale!
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