Oh wow! this isn't really that hard or complicated. I believe the original poster was really asking "do I need an external DAC?" it depends on whether you are happy with your current sound or not. If you are, then enjoy. If not, then it can't hurt to "borrow" a few external DACS, connect them to your current CD player's digital output and hear for yourself. Yes, your transport is slightly old, but some are actually well designed and built but in my experience, most CD players have woefully inadequate internal DACS. most of the problem actually is in two places. 1) the analog output stage (which is basically a pre-amp) is pretty badly designed and built and it typically cheap, 2) the power supply is typically not very good. A very good DAC has very good power supplies and analog output stage that is very good also. So, go borrow a few, connect it to the digital output of your CD player, sit back, play a few of your favorite songs that you know well and listen for yourself. Depending on your price point, there are some very good external DACs that will outperform your existing unit and really suprise you. I wouldn't change anything else until you are use to the sound of the new or used DAC. There are some CD players that actually have decent internal DACS, but depending on the quality of your system, those typically costs.
Go borrow a few, listen and come back and let us know what you have heard.
enjoy
Go borrow a few, listen and come back and let us know what you have heard.
enjoy