ARC CD-2, dac or player upgrade?

I have an ARC-CD2 and I recently purchased and then sold a well known 'value priced' CD Player. The ARC 2 once again held it's ground. I know that the CD-2 is an older design, but it is so very musical. If you have some money to put into your system, upgrade anything/everything else before messing with the CD-2. Or at least wait until you can upgrade to a CD-3 II would be my (humble) advice.

The ARC CD2 is a great player, what kind of improvements are you looking for? I believe all the modded players that would beat the CD2 are way over 1k.

Tubemiser, I recently substituted an upgraded meridian 508.24 and was struck by a naturalness in the upper mids and highs that I perceive to be lacking in the ARC. Also, the meridian seemed to dig deeper in the lows. However, the meridian also seemed to have a much warmer sound, almost a glow in the mids that I perceived to interfere with the transparency I was accustomed to with the ARC. I realize I am splitting hairs here, but I guess what I am after is a more balanced sound, natural timber, extended on the extremes, and no compromises in transparency and clarity. Does this help? Maybe you are correct in that what I am after can't be had at this point in time for under a grand. I am still amazed at how wonderfully natural analogue sounds in comparison (aside from the pops, clicks and noise floor).