Can't give you advice about connecting DAC and room correction.
But - first piece of advice is running a "real" LMS (Logitech Media
Server) rather than using the Touch's built-in (and very limited
server).
LMS can be run on a PC (windows, mac, linux), some NAS boxes can run
LMS, and you can even use a Raspberry Pi.  I found a server separate
from my "main" PC was a huge improvement (I have a low-powered linux PC
on which I run LMS, as well as file sharing for my Windows computers). 
Advantages: 1 MUCH better server than the built-in Touch server. Your
user experience with Squeezebox will be enhanced!  2: it will free up
the Touch's USB port (if that's what you need for your application).


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