UPGRADE CDP NEED YOUR HELP

If you're out a cd player, I've been very pleased with the Cambridge Audio Azur 650C. This should perform better than your former MH CD2.5. Sadly, if you want a significant jump over that, I believe you'll be looking at at least twice your budget—used. Perhaps take the 1k and get the CD player I suggested, used. Then use what's left over to buy a decent pair of interconnects (e.g., Kimber PBJ interconnects, also used) unless you already have a decent set of interconnects. (I have such a pair, if you're interested).

Aaron

Why not get a digital streamer instead and keep your current CDP as a backup?

Have you considered the Distinction line of TEAC? I believe it is an upgrade from the PD-H600, which I have. They're kind of like Esoteric light and should sound wonderful.
http://audio.teac.com/products/distinction_series/

At a nearby audio salon, we swapped out a top of the line Ayon CDP for my TEAC in a 6 figure tube system and all that was really missing was a small amount of body and that was about it. We ended up listening to the entire CD and forgot about that missing body after a minute or so, enjoying the music. I don't feel I really gave up anything considering the massive price difference.

There are others out there, besides TEAC that would work in your system. You just have to see about auditioning some more players. Good luck.

All the best,
Nonoise

I would second Mattkimb96's advice and recommend the Ayre CX-7e which should be available used for about $1500. It compares very well with players costing much more, in my opinion.