Well, no responses, so finally I went ahead and got Benchmark DAC1 for a 30 day trial, thinking I would send it back for sure:)
So here is my setup now.
1)PS3 & Squeezebox Touch (Source)
2)Benchmark DAC 1 ( DAC & Preamp)
3)Outlaw 7125 AMP
4)Revel Performa speaker pair
and finally XLR to RCA Canare cable from Benchmark for analog connections (XLR connection seems to be better on benchmark than RCA, since 7125 does not have XLR connections , this cable is very useful. In addition, Benchmark default output is 2v, the XLR to RCA cable has a lower voltage output)
So .....30 days went by and I found that this is one of the best 2 channel sounds I have experienced. I am no longer using Yamaha as a pre.