If you need a dac you could use an ATXMEGA128 with a built in dac. Maximum voltage for operation is 3.6V so I would run it at 3.3V then you could use either a precision 2.7V reference or waste some of the 12 bit resolution and set the reference to 3.3V. This would be ok if you use a 1% accurate regulator. I don't know if you could use that part with Arduino but I don't care much for the extra layers anyways. I use HPINFOTECH Codevision. They have a pretty good free version. I like it because the code wizard helps you set up all of the registers and generates the initialization code for you. There's a pretty active community, avrfreaks, that can offer a lot of help. My biggest concern with your project is how the high frequency start is going to affect your micro. Lots of EMI energy there. Fun project though. Really opens up what you could use for the motion detection. My guitar pedals from Digitech use a magnet and hall sensor to detect pedal angle with a simple calibration routine that I have to run maybe once a year. My Rolland drum kit uses this pretty neat pressure sensitive resistor strip for the high hat. There's also the possibility of using an optical wheel. Lots of people repurpose the scroll wheel of a mouse for rotary encoding. There's also linear optical encoders. Use two Avr's and a wireless link like zigbee and goodbye cord!