Rich: I have no experience with outboard DACs at all so am in no position to recommend one. Just to clarify things, I'm using the RCA with its own 24/96 DAC, nothing outboard, and the guy using the 963SA was using it with its own DAC as well.
I just added a new NAD 541i to my system a couple of weeks ago, for about $410 US. It has 24/96 Burr-Brown D/A chip, HDCD, remote, digital out, etc. and sounds great IMHO.
I say the Music Hall CD25 has to be considered. Very good redbook playback and also has HDCD to boot (which sounds wonderful). Turn it up a notch with the addition of an aftermarket PC. Bamm!
I would get a CAL Delta Transport and either a Scott Nixon DAC or a Moddified ART DIO DAC! Might cost alittle more ,but it will also give the performance of a $3000+ machine.
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