Recommendations for used CD player

To improve the sound I would look into an external dac and a low cost cd player for a digital transport.  To complement your ESS dacs, look for something that has Burr Brown or AKM dacs that way you can have a variety because each has their own sound signature.  

An external DAC will provide better SQ than a receiver's built-in unit. A home theater receiver contains a preamp, amp, a shared power supply, circuitry for multiple channels and functions, and oh yes, a DAC.

The design of a dedicated DAC unit is more than just a dac chip, it will provide better jitter reduction, a quality power supply, and an analogue output stage which provides tonal characteristics superior to that of a receiver.
There are multiple inputs for CD, computer audio, streaming and accepts many different sample rates. A DAC in the $500 to $1000 range would take your Yamaha DVD player to a higher level in sonics.

I agree that an external DAC would be the way to go. Use the DVD player as transport. There is a SCHiit Bitfrost w/uber analog upgrade for sale here on AG, $290 I believe. Since you don't require USB input, you could search for an older very high quality DAC which could be purchased for a fraction of the original cost. 

The Schiit Uber is up for bid at $290, but would be an excellent  DAC to suit your needs.
http://www.digitalaudioreview.net/2014/03/schiit-audio-bifrost-uber-w-gen-2-usb-dac-review/

Or one of the Schiit Bifrost models for a great price new, with return policy...
http://schiit.com/products/bifrost

Hi All,

Thanks for all the input and advice.  I just realized my Yamaha blu-ray player only has HDMI out, so I'll buy a CD player/transport and an external DAC. 

For the DAC, I'm leaning towards the PS Audio Digital Link III that is for sale here for $299.00.  It gets great reviews and I like the price point.  I can also use it for my itunes library remotely located in a PC but wired to the system.

I am receiving a pair of B&W 801 Series 2 speakers today and am very excited.  Although they probably won't offer too many differences than my 802 Series 2, it has motivated me to consider source upgrades.

I love music and high quality audio, but am and always have been on a very limited budget.  I am buying equipment that I lusted for back in high school and college.  My dream amp was always a  big Threshold- last year I purchased a mint S500/II and it changed everything.

I know my listening environment's room size, low ceiling height , and wall to wall carpeting limits how good the sound can get, but I will try some modest upgrades.