Digital Purchase Advice . . .DAC or New Player


I'm all over the board on this one. . .

I want to upgrade my digital platform and of course, I want the best performance for my dollar. I currently have a 16 year-old Philips 5 disc carousel and a Denon DVD-3910. Obviously the Philips is sub-par as a player, but can serve as a transport for casual listening. The Denon is a decent player and can also serve as a transport for more devoted listening. It also decodes HDCD which is a must for me.

I've been looking at the Cullen level 3 PS Audio DLIII as an option, but was wondering if I'd get better results going to a new player. On that front I've been considering the stock Raysonic CD-128 or the Moon modified Original CD-2008 MK2. If I go with a new player I would use the balanced outputs to feed a Pass Labs X-1/X250 driving Thiel CS1.6s. My musical tastes are rock/jazz/classical.

Would I get better performance and musicality from the DAC or from a new player?

Any and all feedback is appreciated.
catastrofe
Consider the Benchmark DAC-1 -- has both balanced and single-ended outputs. Many great reviews. Works well even with plain old CD players as a transport.
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The PS Audio Digi Link 3 even without the mods will be a very good choice - purchased one for my second system using my Arcam CD72 as the transport - nice upgrade to my ears