Which matters more, DAC or transport?

The answer isn't one or the other. It's too dependent on how the connection between the two is implemented. A cheap transport and a cheap DAC with a well implemented I²S connection may sound better than their expensive counterparts with a optical TOSLINK connector.

In direct answer to the poster's equipment choices -- I think you're more likely to get better sound with a new CD player.

The easy way is to just buy an integrated player.

If the Arcam is an older device, it is probably possible to improve on it in all regards with newer models at modest cost, like a Rega or Cambridge Audio player, say.

If it is newer, then it might be worth trying the DAC first and then changing transport later but only if needed.

GOing the DAC route will also open up the option of using a music server if interested, which is really something worth considering for the future.

PErsonally, I'd think twice before dumping a lot of money into a high end integrated CD player these days.

>>09-22-09: Dave_b
having owned and demo'd a good portion of what's available on the market<<

And still clueless.

I've had just about enough of your worthless commentary Audiofeil. Someone who makes a point of critisizing Audiogon members for sharing their experiences and opinions, without offering anything helpful themselves, needs to see a psychologist.