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.
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.