Hi bretta200,
I downloaded and installed 0.3-beta_20141029_2GB(2).img.gz
So i guess you have a Raspberry Pi1, right?
If so, go to Menu -> Settings and enable I2S for your DAC.
http://www.runeaudio.com/documentation/runeui/settings/
After rebooting you should get your DAC as output option (Menu -> MPD).
You also should update to our
nightly builds.
The image is rather old and a new one is on its way.
Frank