Need opinions on all-in-one or separate dac.

Sacd playback is analog so the dac would be for redbook playback only if that matters to you. If you are going to keep the Sony for a long time (not much resale value compared to the price of mods) the I would go with the mods,you should be able to ask someone over at Audio Asylum forum about them as to how they sound on your player.

Given my happiness with my modded SCD777 ES (not by Mr. Wright, but a tubed Audio Logic analog stage), and the reports I've seen at AA, I'd also suggest that you consider a mod for your Sony over a DAC. I think you'd have to spend a large amount on a DAC and digital cable to match the sound of a properly-modded Sony on redbook, and the mods would also enhance your SACD playback, showing you what the medium is truly capable of. Only drawbacks are voiding any warranty you have on your Sony and the fact that you'll never get the full amont invested back on resale. Check the SACD hi-rez forum at AA as Sogood51 suggests for people's reports on the various mods available.

Thanks for the suggestions. I'll be going through the AA Hi-Rez threads tonight.

I heard Rcprince's modded Sony 777 in direct comparison to my stock 777 in his system a few months ago and posted my findings here on Agon. Go to referenceaudiomods.com for more info on Sony Mods.