DAC vs. New CDP


I've just started looking into what DAC's really are. And I now have a question that I would like some opinions on. I've heard that DAC's can make a CDP sound great, but what if, for a few more dollars, I just got a new (or very nice used) CDP with the very latest DACs already inside?
I have a Classe .5 CDP, about seven years old. I know it doesn't have the modern DACs in it so I would think it's sound isn't as good as it could be. I'm wondering if I should look at a DAC to help the sound (CDP only has a AES/EBU output) or purchase a new or newer CDP. I've been looking at the Cambridge 840, Krell 280, Sim Audio, Bryston & Classe, all in the $1,500 to $2,000 range new or used. I know that the Benchmark DAC will cost around $1,200 new. Very few less expensive DAC's have an AES/EBU output.

My system is: Krell KAV 2250 amp, Krell KAV 280 pre, MF phone amp & headphone amp, Rega P1, Paradigm Studio 60, Kimber and RSCables.

Thanks for any input, ideas or experiences !

Jim
fritter5
I have an older EVS Millenium II - nice upsampling dac
but one input

I now have a Wadia docking station for Ipod

would like to get a dac where I can do 24/96 and redbook
multiple inputs

benchmark or cambridge dacmagic?

any others you would suggest

thinking about an alesis digital sampler to convert my analog sound to digtial high res
Audiotomb - Benchamark will do it. It has three inputs (Toslink, S/PDIF, AES/EBU) and each of them with proper adapter can go to any format (same chip) as I understand it.

People who oppose oversampling in general are against digital filtering and not the oversampling/upsampling itself. Latest Stereophile review of upsampling Meridian 802.2 player (different digital filter) proves otherwise (and only for $17k). Benchmark is very good and practical for what it is. It is on neutral/cold side.
Sprink, I'm using the CA 540 v2 + DacMagic combo and I'm extremely pleased, I think you will be too. Be prepared to revisit all your CDs and have fun. And of course you can add your computer as second source.