Recommend a DAC

If $2,000 is your approximate budget, the best value IMO would be the dac route. An example, even though I do not own one, would be a demo/pre-owned PS Audio Perfectwave dac and a good digital cable for under $2,000. You would then be good to go for additional digital requirements in the future, like your computer, a DVD or even a Perfectwave Transport.

Good luck but the dac is definitely the way to go IMO.

Bear in mind that transport does make a substantial difference. I bought a Reimyo DAP-777 DAC (for $2400 on A'gon), but could not get the sound I expected until I upgraded transport from a Sony DVD player to a Theta Jade.

Perfect timing for this thread. I, too, am in the exact dilema with my RCD1072. Something else to keep in mind is, in my opinion, upgrading to a better and more expensive DAC yeilds a small change. I've tried the V-DAC and the PS audio DLIII and didn't hear much of a change. So paying 700.00 on a PS audio DAC to me isn't a upgrade but rather its like waxing a freshly washed car. I say save your money and find a deal on a audio research or something like that