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An Airport Express setup can be improved upon, but it's inexpensive, convenient and provides acceptable S/PDIF output to a DAC. It's what I use (with the addition of a Monarchy Audio DIP between the Airport Express and my DAC) and I'm happy. :)

Start hanging out at Computer Audio Asylum. Do some searches.

Take a look at Stereophile's review of the Airport Express.
The beauty of this unassuming component, however, is its S/PDIF data output, which allows the AirPort Express to assume a respectable role in a true high-end audio system.
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