Getting back into audio and need advice....

Probably not. I'd stick with what you have there.

Ncarv, how high would I have to go to surpass what I have now?

I haven't heard Bel Canto DAC1, but I used to own Bel Canto PL-1A and currently own Linn Unidisk. I've recently purchased Sony XA5400ES, and I am amazed how much more detail Sony can bring out of redbook CD. MSRP $1500 and a little over $1000 on eBay.

I'm not sure how old your Sony/Modwright CDP is, but I recommend putting your 1K into upgrading your DAC, because although transports haven't improved that much, DAC's have.

I would sell your DAC1 for a few hundred bucks and then try to buy a used Bel Canto DAC3 for around $1550, it is way better than the DAC1. I was using an un-modded Sony 9000ES Transport and a Bel Canto DAC3 with great results. I do like Sony transports, especially the heavier ES Series.