Upgrade my CD player or buy a DAC?

i would suggest to save your money until you can get the wyred 4 sound dac1 or dac2. it all depends if you want to upgrade to something much better in the future (and lose money on a cheaper purchase) or buy something top notch and grow into it with future upgrades from your other equipment.

The answer to your question is a no brainer. Go with the seperate DAC! If I were you, I would save a little bit longer and get a used (from this site), Benchmark DAC. It will be the best investment you have ever made. Read the reviews. Class A in Stereophile and has been since its introduction. It's also a headphone amp. It can be used as a preamp. It has both single ended and balanced outputs. Absolute bargain. I have seen them on this site for less than $600.

I think that most would agree that the DAC has a more significant impact on sound quality than does a transport, especially at your price point.

Test 1: Connect your CD player in parallel through the DAC and directly to the system for an A/B comparison of sound quality.

Test 2: Connect a 2nd CD player to the DAC using an identical CD and do the same A/B comparison.

I suspect that you'll confirm that the DAC is a better upgrade.

Also, a DAC can be used with multiple pieces of equipment. I do not believe that you could get a new CD player that can double as a DAC for your budget.

I second Griffithds's recommendation: Benchmark DAC1. If you're patient, you can find one second-hand for $600. If you don't like it, you can sell it on without a problem. It's a fantastic piece of equipment.

Thanks for all the input! I was leaning towards a DAC and I have heard good things about the Benchmark DAC1. Are there any other DAC's you would recommend? The Musichall 25.3 also caught my eye.