If I go for an outboard DAC it's definitely DCS. It's the closest to analogue you can get period and yes you can use your digital coax (SP/DIF) out for DAC in your CD player.
Depending on the transport quality of your CD-player you may or maynot need error correction or jitter reducer box.
Depending on the transport quality of your CD-player you may or maynot need error correction or jitter reducer box.