Optimizing my CD Source - what to do?

thanks to everyone for the input. I guess my tentative conclusions so far are:

1) Spending ~ $1500 on a top level cd player won't improve on my AM DAC performance
2) Seeking out a good dedicated transport, or CD that can perform as a good transport with the AM is a priority. A number of transports suggested, I have some research to do now, and I can spend the leftover $ on software or an IC.
3) A good digital cable is a priority
4) Consider a Genesis Digital Lens (or other Jitter reduction??)

Any other suugestions out there, or opinions on the above conclusions?

thanks again to all.

Bdgregory, I have heard before and after comparisons of different CD players with the Dakiom feedback stabilizers, advertised here on Audiogon, and there is a true upgrade of performance with my less pretentious equipment. Acted as a non-invasive favorable modification.
Also, the modestly priced Monarchy line of jitter reducers is excellent, although not yielding the degree of external modification I hear with the Digital Lens whose effects follow from more than just jitter reduction. Both can now be bought and sold here on Audiogon without having to take a loss on the roundtrip, if you want to check out what they do.
Finally, there is a universal type of external upgrade to any component box in your system provided by the various philosophies reducing vibration with footers/spikes/supports from different manufacturers.
For example, Herbiesaudiolab.com has some types which cost very little, and up from there. A call to the contact phone number will get you some advice from the proprietor-guru of affordable, simple resonance control.

You guys must be hearing something I wasn't hearing when I was listening to an Audio Mirror D2. I heard absolutely nothing that comes close to what I've been reading about it. I am not trying to say it's hype, but beleive me, nothing was special about this dac. Yes, it will outperform S7700(when the Sony is used as a stand alone cd player). But it was way below my expectations. It did outperform a Marantz SA8260 we had on hand, although I honestly can't say that it was a huge improvement. But when we inserted Bel Canto DAC2 instead of Audio Mirror dac, again driven with S7700, the sound improved and not by a small margin. Both I and the owner of the Audio Mirror dac agreed on this.

Clio, I know you had your Mirror D1 dac modified by TRL, so are you referring to the performance of that modded unit? I am not trying to say any of you guys make things up, but, this particular D2 dac is $500(well actually is $135, but we'll touch on that later) and sounds like it too. May be the D1 version of the Mirro dac was better, I don't know, never heard it.
To me, it's a chinese DIY kit that retails for $135, but with an upgraded cap and shiny top. That's all. And I got to give these guys a credit for a $135 unit that served as a basis for Audio Mirror co. to take advantage of and turn crap into candy. You got to admire Vlad as well. He sure knows how to make bussiness.

Bdgregory, personally, and the rest of the folks here may disagree if they wish, the Audio Mirror D2 will be easily outperformed by a good stand alone cd player, such as Meredian 508.24 and Audio Research CD2, CD3 and CD3 MkII. They all cost more, yes, but any of these players should be noticibly better than your current combo. I am familiar with these players so just speaking from my experience. And I think you should try Apollo player. Just make sure you can home audition it before you drop the change.

I typed in a nice reply with several suggestions for Bdgregory. It's been over an hour and now I don't know if it is still going to show up.

But, in any case to sum up what I wanted to say is that practically any good used cd player in the price range of $1500 to $2000 should outperform Audio Mirror D2. Should be a pretty noticible improvement.

I am certain that stand alone players such as Meredian 508.24, Audio Research CD2 and CD3, Cary 303/200 and Cary 303/300 will outperform the D2 even with a best possible transport and best possible digital cable.

Based on my listening impressions of D2 I would advise against purchasing an expesive transport and/or expensive digital cable for it. Not because it's a bad dac, but just because neither a $2000 transport nor $1000 digital cable can improve on the performace of this dac. You better of looking at other dacs or good stand alone cd players.

Remember, in this hobby, there are no miracles. If something costs $500, then at best, this is what you're getting. Sorry, don't mean to doubt what the others had to say about the Audio Mirror dac, but most people who posted reffered to D1 and not the D2 model. Clio may even be reffering to his TRL modded D1. I hope you are talking about the un-modded dac, Clio. Otherwise it wouldn't be fair...

I meant to say Meridian and not Meredian...my bad