ARC CD-2, dac or player upgrade?

Overhang, any recommendations for a dac since you apparently tried many?

I agree with above...the cd2 makes a great transport...

keep in mind when running a dac a extra shelf, power cord, damping, and digital cable is needed (this adds quite a bit to the price depending on where your system is at.....digital seperates are very sensitive in this regard imo.

in regards to dac's the electrocompinent is very good and is about $1k used (awesome dac if you run all balanced)..if you can jump up to $2500 then the audio aero prima dac 2 or the reimyo are world class dacs (i have owned the electro and now own the aa prima 2)...

you might consider an arc cd1, but without input from you as to what constitutes an improvement, any suggestions are purely conjectures.

are you running CD2 balanced into your preamp? ARC usually sounds best balanced. I compared it directly with the Bel Canto DAC2 and even single-ended I preffered ARC. It layers the soundstage better and overall was more refined. The CD3MkII is an upgrade though if you want more clarity, better definition.

And I highly doubt that for less than $1k you will make any improvement. It will be at best a step sideways and if that will be the case, consider it an achievement.

You might consider contacting Great Northern Sound and discussing your wants/needs with them. Their first level upgrade runs $750, which is below your budget...just might get you where you want to go.