I need help - Better DAC or NEW CD player?


I am in the middle of purchasing some components for my new system, unfortunately, reading posts on a rainy night on Audigon only makes my "upgradeatitis" syndrom more acute.

The problem is that some time ago, I bought a squeezebox Duet, to use as transport for lossless files. The idea obviously was to get a good DAC to go along with it.

The one I was almost set on was the Dacmagic, which gets very good reviews here and almost everywhere you look. But, on the other hand, I am willing to spend a little more......Now, the thing is my current CD player is a Rotel RCD 1072, and was wondering whether this Dacmagic would give me any improvements if I use the rotel as a transport for it.

Or, I could get for example a Wyred DAC or a Benchmark DAC1 and use the Rotel for transport, but I dont know the limits of the Rotel as transport alone, I dont want to spend 600 more bucks on a better DAC to be fed with 2 "not so good" transports (the Duet and the Rotel).

So I am kinda stuck!! On the other hand I am contemplating getting the Dacmagic to use only for the Duet, and getting a new better CD player altogether, which puts me into another doubt, I dont know if the little money I can for the rotel + lets say 1000 more will really give me any improvements in the system if I purchase a whole new CD player since the Rotel is said to be very capable.

FWIW my amp will be a W4S STI500 and speakers are B&W 803D.

Let me know what you think about this and your suggestions on what you would do.... thanks in advance for all your help!
demianm
I heard the 840c on ARC pre-amp and Rogue poweramp running PSB Synchrony speakers. The results were top notch, one of the best I have heard.

I've heard DCS and other high end units on other systems. The sound in each case was different but top notch still. The system the player reides in, particularly amp, speakers and room obviously are major factors in determining the resulting sound. My conclusion was I could live easily with teh Cambridge in the right system for me with no reservations if needed. I would not look at the way more expensive units without some kind of direct a/b comparison possible which I have not heard.
Knownothing,

Which other CD player except the Raysonic would you recommend at this price point ($1000)?

Does anyone happen to know if it is possible to use the 840C with both outputs (unbalanced and balanced) wired to the amp? I would like to be able to stuff my tube buffer in between the amp and CD/DAC to be able to improve the sound of MP3 playback, but use the balanced output for regular CD playing.
That has the capability to act as an external DAC for other sources if necessary, or just a good $1000 +/- CD player?
??? A really better one? The 840C is better. Nothing for $1000 is better, or likely just as good.

The DACs I directed you to earlier are "really better" than the Rotel, but they cost $2K to $2.5K.

I can think of other CD players for about $1500 that are better than the Rotel - like the Naim CD5i or the Moon CD1, but in about the same league or perhaps not as sophisticated as the 840C.

"Really better" for $1000 is "really" tough.

Good luck