Recommendations Needed: Upgrading from ARC CD-1

Elgordo is right on, your original description of your system's sound is an exact description of the Vandersteens, with a very small amount of influence from your amp and cdp. While an amp upgrade would make a definite improvement, it still will leave you with the Vandy sound, which is a nice sound on initial listening but ultimately annoying because you can't escape the inherent character of the speakers no matter what you do. They simply aren't neutral and you will drive yourself crazy if you try to fix this through component swapping. $3k will buy some really good speakers on the used market; try Merlin, Meadowlark, or Dunlavy. Good luck!

I didn't want to throw my two bits in on speakers since I don't know the Vandersteen sound real well. Karls has a good list particuarly the meadowlark but I would also add Alon. I am into single ended now so don't have my ARC stuff anymore but the setup used to be VT100, CD 1, and modded LS22 with Alon V's. Sounded very very good. The Alon Lotus works with this type of setup just as well with more controlled bass in smaller rooms. Meadowlarks also produce a very fine sound with ARC. I guess the point comes back to the CD 1. It is extremely doubtful the CD 1 is your problem. You will have to decide if you are going to start with speakers or the amp but either would be more productive than the CD 1.

Before you try any elaborate changes just borrow a really good quality powercord from someone. Of all the digital pieces that I have ever had the joy to experiment with the ARC players seem to be transformed by powercords. All digital is but few are as totally improved as the CD 1 and CD 2. Try a Electraglide referenceglide or P/T Glide, a Synergistic Designer reference is expensive but extraordinary on digital, a Shunyata Taipan would be stunning or any of his cords, an Audio Magic Clarevoyant, a
custom powercord, the list could go on and on. You will be surprised. If you cannot find someone locally to loan you a cord I will if you pay shipping.

If you think the sound of your system is too laid back you may prefer the CD2.Though I would be cautious of some of this (I agree with much of what is said here but not all) advice to change components and people pooping on the Vandersteens. I have some of the same components in my system and it is set up very carefuly and sounds better than a friends system with 450 watt mono tube amps and $13000 electrostats.(his room needs serious tweeking, a lot of guys around here are of the throw money at it ilk, that don't always solve things!) Any way the VT 60 is a classic ARC amp and I love mine. But if you want more of the sound of the VT100,VT50 ARC is doing an update for your amp that will give you a more current ARC sound. The mod is the "constant current source regulation" said to "give better dynamic expression, bass extension,transparency, and overall naturalness... overall gain is increased by 2.5db." The mod is $250 and you get 3 new 6922's in the deal with the clear damper rings.
Try a Custom Power Cord Co.(available from Music Direct)on your CD1. Buy which ever one you have the budget for,I use the "High Value" which is real cheap compared with some out there. This cord is killer for the $$$ I highly recommend it! As for these folks that don't like Vandersteens let them listen to what they own and keep what you have. Don't sell them! I will make a radical suggestion to make your system fly. Buy a Vandersteen sub! Or better yet 2! It will come alive without a doubt and if you want someone elses opinion on this read the "Audio Prefectionist Journal" article in issuue#2 go to www.audioperfectionist.com I agree with what this guy says and I am also a former audio professional so I have some background and 30+ years of experience. Some of these guys, (no offence but you know who you are) never turn on their stuff they just chat here and hand out band aids and stroke their egos. E mail me and I may be able to help you. I have the 2Ce's with the sub, an ARC CD1, ARC SP9 ,ARC VT60,Set up,set up, set up, tweek tweek, tweek! Don't waste your cash intill you know what you already have.

As one of the "Vandy-bashers" I have to reply to maxgain. I am not saying they are bad speakers, in fact they have a great many attributes, including good sound quality for the price, and many people are very happy with them. But there is no doubt in my mind and in many others' that they are "voiced" to sound a certain way: Mellow, warm, and cozy. Similar to the "classic" tube sound, and many people enjoy those particular colorations, as they are vastly preferable to harsh and cold if you have to choose. But if you are someone who values neutrality and is disturbed by any consistent coloration, even a warm and cozy one, you can never find happiness with a system that isn't neutral. And since the original poster sounds like he is hearing the same things I do when I listen to Vandys, I was only trying to help him remove the most obviously colored part of his system. That's the beauty of this hobby, everyone is entitle to enjoy the sound they like, and to modify their system until they get it!