Digital Purchase Advice . . .DAC or New Player


I'm all over the board on this one. . .

I want to upgrade my digital platform and of course, I want the best performance for my dollar. I currently have a 16 year-old Philips 5 disc carousel and a Denon DVD-3910. Obviously the Philips is sub-par as a player, but can serve as a transport for casual listening. The Denon is a decent player and can also serve as a transport for more devoted listening. It also decodes HDCD which is a must for me.

I've been looking at the Cullen level 3 PS Audio DLIII as an option, but was wondering if I'd get better results going to a new player. On that front I've been considering the stock Raysonic CD-128 or the Moon modified Original CD-2008 MK2. If I go with a new player I would use the balanced outputs to feed a Pass Labs X-1/X250 driving Thiel CS1.6s. My musical tastes are rock/jazz/classical.

Would I get better performance and musicality from the DAC or from a new player?

Any and all feedback is appreciated.
catastrofe
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The PS Audio Digi Link 3 even without the mods will be a very good choice - purchased one for my second system using my Arcam CD72 as the transport - nice upgrade to my ears
You are going to have to spend a bundle to really beat the denon. If you like its multi-purpose playing, consider keeping it for dvd/a & sacd but get a nice 2 channel DAC.
Another thing you may consider is getting it modded? Partsconnexion or Underwood both can take it to many new levels. You could even get tubes put in it?
My Denon is great and actually sounds better without some external DAC's that should improve the sound. However, my modded music hall wins.
I HIGHLY recommend a MHDT Labs Havana DAC. I cannot believe that for $800.00 the DAC sounds as it does. Simply stunning- and I've had a few Digital front ends in my day.

You may want to check it out.
I use Bel Canto DAC3 and it is very good. It also has its own preamp section with a nice volume control.

You will get more flexibility if you go the DAC route.
You can have more than one digital source with a DAC3, i.e laptop, Squeezebox, transport, etc.