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!