New CDP or new DAC?

I say it depends on if you would be planning to use the DAC with a computer server at some point. If you only ever plan to play CDs one at a time then I'd say get a new CD player. There are some incredible deals on used CD players these days since the trend is to go towards a computer based server and DAC. I personally have no use for a CD player ever again but some guys are old fashioned and just want to play their discs and are happy doing it that way. Good for them I say and good for the guys who still like to play vinyl too.

DACs give you more flexability in that you can connect several sources. If you only see yourself using one digital source, that's not an advantage.

Dollar for dollar, I've found DACs sound better than CDPs. Less stuff in the box means more sound quality per dollar; at least in theory anyway.

I've had the Rega DAC in my system for a little evr a months now. It easily beat out my Rega Apollo, which cost the same amount. The DAC does everything the Apollo does (except make me get up to change CDs) a good bit better.

As far as coax vs toslink, it depends on the transport. Some stuff is noisy electrically, and toslink works better due to no electrical connection to pollute. Toslink can introduce more jitter to the system if not done right/the right cable. Trade offs, just like everything else. Anyone who says coax is always better than toslink hasn't heard enough of a variety of transports and good toslink cables IMO. There's no one right way to do anything, and every rule has exceptions. Your ears should be the judge, not Sam Tellig's or anyone else's.

Not a fan of Musical Fidelity at all, personally. Take anyone's opinion with a grain of salt. I'm sure you've heard gear that wowed a ton of people, yet fell on its face to your ears. I know I have.

The 542 is a very good CDP, or at least it was in its day. Make sure what you get is a good step forward and/or a step forward in every way, not just one or two things are better. That can be said for any new piece IMO.

Also, if you're looking to improve things and are prepared to throw money at it, make sure everything's set up right - placement, acoustics, etc. before doing so. No point in buying something new and not getting your money's worth because the room sounds like crap.

Just some food for thought.

Cheapest and shortest path?
New CDP. Period.
No additional IC to buy… no added worries as to the power cord on the DAC either.

My plan? Do Both…. IF….

IF you aren’t spending heavily on the CDP, especially. Transports do matter but you gotta really step up the donation at the ‘Transport store’ to really see gains there. My former Sony SCD 777 ($3K) and a known as a very good transport if not a great one, was maybe 20% or less better sounding than my $175 Oppo DV 980H, using both a Bel Canto DAC III, and a Lavry D10.

There was about eight years of tech gains across that span inside the Oppo. The Sony was made in 2001. soooooo…. Also, my Sony required a motor and laser replacement after five or six years of ‘go to’ near daily use too.

For DACs. Especially those with a wealth of interfaces, and great jitter reduction significant gains can be had just adding one of them… and a cable or two.

DACs are a nice spot to go for immediate improvements in sound quality…. IF, again, it has great jitter reduction prowess… and if picked out might aid you down the road, should use of a file playback system is desired.

Digital world revolves really fast, So, a new CDP could be the one box solution

But, If DAC, definitely Coax…

If nice CDP & DAC…. BNC, or AES cables.

I vote for new DAC.

Having to repair well over a hundred CD players, all but a very few came down to the tray/laser assembly. Considering what I hear the street price for those who engage in that kind of repair today, I don't want to invest a large part of the cost of the machine in the power supply and output section knowing the part that reads the disc has as high a failure rate as it does.

Beyond that, a good friend who buys really expensive stuff picked up a PS Audio Perfect Wave DAC. He tried various transports, and found the cheap Oppo he had in a third system gave up nothing to the more expensive units tried, and every combination he tried bested his almost new $20K CD player. No surprise in his selling CD player pretty quickly after that.

At least with the PS Audio, because the DAC reconfigures the digital signal, the transport can be factored out of the equation. Great news in my opinion, as perhaps the weakest link in the audio chain is being taken away from us. Until recently, that has the exception and not the rule, but it's clear that the industry is going toward that.

First why are you even looking at equipment reviews. Waste of time. IMO and in my experience a DAC always out performed a CDP. There are so many used DACs to try. Find yourself one of the Museatex Bitstreams. You can buy them and sell them with no loss.

Happy Listening.