Good cd player and a great DAC or great cd player?


I'm moving from a entry level system ($1K) on my way to hi-fi bliss ($20K?)

I am currently considering a $2.5k cd player. It's going to take me a while to save for it, though. Would I be better purchasing a 1 k cd player with digital output now - I'm currently using a $300 cd changer - and then purchasing a $1.5k DAC later, or should I save for the $2.5k cd player? Another related question: How much better would the transport be in a 2.5k cd player be versus that in a 1K player?

Thanks for looking and I hope you can help.
conscious
Thanks again for your input. I certainly have come across the "best laid plans", challenge. I was recently offered a Jadis Integrated Orchestra amplifier at a very, very good price and I'm finding it hard to stick to upgrade path. My path is based more on principles than components right now. Certainly, I could take a giant step and select 3 components at my intial upgrade phase but that would upset the budget - read wife. I am therefore consigned to upgrading a piece at a time. What may present as a great speaker now, might seem less so down the road when I upgrade that component. Therefore, I get to continue enjoying the journey while saving for my next purchase.

As far as falling into money - that's unlikely. However, if I can save about $160 a month, I'm able to meet my 20k objective in about 10 years. I don't plan to wait that long to drop the money - I enjoy the tinkering too much - but given my income, I don't think it will be a challenge. This means a new source this year, integrated amp the following, speakers the following, etc. If I'm able to purchase wisely, then I hope to lose only about 15% on resale of my used equipment. Therefore while spending 20k, I hope, in the end to be able to purchase gear for around 17k. But if someone makes me an offer I can't refuse....
Unless you are planning on buying one of the more expensive universal players, such as the Denon and replacing all of your CD's with SACD or DVD-Audio disks, I would recommend buying a top of line used DVD player, such as a Sony DVP-S7700 and get it modded. Then use this as a transport for both audio and movies with a good DAC, such as a modded Perpetual Technologies P-3A. No off-the-shelf CDP will match this kind of performance. You can buy both on Audiogon for about $700. The mods will cost you around $1800.
My husband and I are in a similar situation with the upgrade plan and limited cash flow.

We upgrading our source now. I had planned on getting a CD player, but I listed to a lot and only really liked the $3.5k Linn Ikemi. Instead, we are trying out a Bel Canto DAC 2 ($850 dealer demo) and building a PC based transport (my husband is a computer scientist, so this appeals to him). Parts are on their way, so I don't know the verdict yet.

Just a thought for you...

We had planned on buying an integrated amp until we discovered Outlaw Audio. We have their 950 pre-amp and 7 monoblocks. It cost us less than $3k and sounds a lot better that all the integrated amps we listed to in that price range. They only sell online (www.outlawaudio.com), and their prices are amazing for what you get.

Good luck!

Joy Elyse
Hey Joy, thanks for your input. I'd be very interested in how that Bel Canto DAC sounds with your transport. I noticed you have the 950 with - holy moly- 7 monoblocks. I assume that when you mentioned integrated amps you compared av receivers to the av seperates that you have now, right? Can I ask what you compared to the Outlaw?
Conscious,

We started off looking at receivers: the Marantz, the Onkyo, the Denon, and the Harmon Kardon...the high end of mass market stuff.

When we looked at separates, we looked at Adcom and Rotel...both of which are more expensive than the Outlaw Audio, but I didn't think sounded nearly as good. I read the reviews, and everyone said Outlaw was an amazing buy for the money. We wanted something with Dolby Pro Logic II, DTS, etc, and component switching that would still sound great with 2 channel audio. (The 950 has an analog bypass.) And with deal they were running, we were able to get the 7 monoblocks and biamp our tower speakers. We explored the idea of getting a used pre-amp, but still couldn't approach what we wanted in our price range.

What we didn't look at was the integrated amps from the high end companies. Audio Research makes an integrated amp for $3k, Linn makes a Linn Classik Movie System integrated DVD/CD/Tuner/Preamp/Processor/Power amp for $3k (which I can't believe can sound that good for the money, but I am a Linn fan), Musical Fidelity makes a few integrated amps, as does Moon, Krell makes a one for their KAV series. Actually, so does Outlaw Audio. There are a ton out there. I'm sure some of them might be better than the Outlaw, but I didn't do the comparisons. There are a ton on Audiogon for fairly cheap.

My Bel Canto should be arriving sometime early next week. I plan to compare it against the Linn Ikemi (borrowed), and also try the Ikemi as a transport to see how much of a difference it makes. I'll let you know how it sounds.