Absolute top tier DAC for standard res Redbook CD

You're looking for music reproduced naturally.
1) One of current Lampizator DACs (level 7 with direct coupled DHTtube is their top model). A friend has their level 5 and it's excellent.
2) Concert Fidelity DAC, ( the latest has a battery powered chip version).I heard the prior model and it's excellent.
3) Yamamoto YDA-01 DAC and replace the output coupling capacitor with Duelund CAST. What I use and it's organic bliss.
I'm certain there are other very good options, but I can vouch for these three.
Charles,

I'm not quite sure what you mean by "musical", "emotional" and "engaging", but as those terms are commonly used they are the antithesis of "accurate" reproduction (to be clear, I am referring to a general sound in reproduction across all music; alternatively, a particular recording can be accurate and all of those things). It sounds like what you want is some semblance of accuracy but with some coloration leading to increased emotional engagement.

In any case, you are already working with a good, but colored and "musical" preamp so you should be careful not to err too much to that end of the spectrum if you want to retain any semblance of accurate reproduction. From what I've read the Capri is even more colored than the Levinson.

Given your tastes and based upon my experience with the XDS1, I think an EMM Labs DAC2X is very much worth considering.

Good luck.

Lavry Gold. used by top music studios all around the world.

One of the best I've heard to date is the Ayre. I know it's not expensive, but it's musical and I've heard it in a few systems and it always sounds great.

Since you are already using a PS Audio PWD II, why don't you wait for a little until more people hear the new PS Audio Direct Stream DAC? There is a kit available for retrofitting a Perfect Wave DAC for $3K. Paul McGowan claims that you will hear things from regular CD's that you didn't know were there before. It seems the people that he had at the launch of the Direct Stream were impressed.

I would sit on the new purchase while you shop around until there are more people that listen to the new PS Audio DAC. That will provide a wider range of opinions to prove or disprove marketing hype.