How do I decide on a CD player or adding a dac?

Check out this idea: Go for an MBL Link - it's a DAC and there are two for sale on audiogon right now. One with the full nelson for $450 and one w/o for $195. The Link is recommended by many, especially Arthur Salvatore at http://www.high-endaudio.com/RC-Digital.html who is hard to please.

This gives you the flexibility to go with your computer's hard drive as your source down the road...something more of us seem to be doing. Check out Steve Nugent's discussion on computer audio here http://www.empiricalaudio.com/ and his feelings on how good a hard drive system w/ an outboard dac can be.

For someone on a budget, this seems to be the only option for a true audiophile system. Burn all your cds on your hard drive, buy the msb (and an extra hard drive if you need more space) and you're in business. You can even sell your cdp and use the extra cash for more drive space.

Sorry, steve Nugent's site is at www.empiricalaudio.com i don't know why it showed up incorrectly.

While I'm at it, here's another suggestion after looking at your system: I've never experienced anything but listening fatigue w/ solid state...sorry guys, I haven't...maybe it's must my ears or my taste but that's the truth. You could sell the amp and preamp and buy a tubed amp ... there are many you could afford with the cash you raised. Skip the pre amp. Use your hard drive as a source running into a benchmark dac1 (rave reviews for this dac) because it has a volume pot and go straight into a tube amp and then to your speakers. The benchmark can be had for $750 used. I think you might be able to swing that plus a decent tube amp if you used the revenue from selling your pre and amp.

The benchmark dac can be upgraded as you decide it's needed and as the funds are available. Steve Nugent upgrades them.

And then here's a crazy idea. I've never heard them, but there is a tube powered monitor speaker (you'd have to do research to find the brand - they weren't expensive at all) A small monitor will work for you in your small room. If you sold your speakers, amp and preamp you could buy the benchmark dac1 and the tube speakers (no preamp or speaker wire needed.) Then you'd have a tubed system with a killer dac and a bit perfect transport (your computer.) Now you're talking high end on a budget w/o listening fatigue and room to upgrade as finances permit. Who can argue with that solution? Well, there are probably plenty but i'm just trying to think of the cheapest way into hifi w/o the solid state digititis.

Good luck and let us know what happens.

Try the monarchy 22a/b/C

Andy,
You finding the Apogees to be bright? You didn't seem to complain of this with our old speakers.
I would never entertain the thought of putting bucks into a DAC with that for a transport. Upgrade the disc player to a decent single disc player. Rega planet 2000 would be good; smooth and non-fatiguing sound.

From some expereance with and owning odyssey, DAC-AH, and many speakers and pre's.. Gotta tell you that the Passive line is gonna be thin in general, and those speakers are going to add to it.. Come down to that DVD player and its way to much plasic in the way. Dac-Ah is a very SOLID step in getting the Digital sound out of the way, but totally tamming your issue without some additional room acoustics, better look at a smooth active pre that will sweeten the mids and bass, even better probably a warmer Tube piece, conrad johnson or Cary type thing... But I think you might want to stay away from the cheaper Rogue tube pre with this combo, I know they are all over and tempting prices. Those amps will react to anything you put in front of them, they are like Glass windows very neutral to whatever is feed, they will warm up with something warm in front.. but the speakers and your room will be a bit hard edged with that style and all Reflective surfaces that you explain in your dialog.. Try the DAC -AH, you will like it Period just because it sounds like music and is rediculously cheap, but it will not work miracles with the whole problem this way.. You need to fatten the sound elsewhere.