Does the Transport make a significant difference

"I'm assuming changing preamps will take me to yet another level"

It certainly can, but probably not for $2-3K. Good preamps start at ~$10K unfortunately. You might consider a passive transformer linestage. The Music First is very good at around $4.5K.

The fact that driving your DAC direct to amps does not sound better is probably due to either:

1) the DAC does not have low enough output impedance to drive amps
2) the preamp provides a level of isolation between the DAC and amps
3) the volume control technology in the DAC is inferior to the preamp

The likelihood is that the problem is #3.

The best possible of all worlds is to eliminate the preamp without using software volume control. Instead, use a volume technology in the DAC that does not add distortion or noise, such as this:
http://www.empiricalaudio.com/products/overdrive-dac

This volume technology is like no other DAC. There are actually no parts added for the volume and no analog circuits being adjusted. No bit decimation either.

The DAC is expensive, but replaces preamp, computer interface and DAC. All you need is a computer, amps and speakers. It recently won a multi-DAC shootout on Audiogon, beating out PWD, Directstream, Mietner MA, Lampizator, APL and others:
http://forum.audiogon.com/cgi-bin/fr.pl?ddgtl&1398132150&&&/Absolute-top-tier-DAC-for-standard-res-R

There may be a demo unit for sale soon BTW, at a discount.

Steve N.
Empirical Audio

Ricred, you seem to listen to music which has a combination of rapid leading edges that need to be handled without intermodulating the treble -- lest they become harsh, and lots of sostenuto in the melodic lines, which instead need mounds of harmonic exposure to sound emotionally involving.

The above, in combination for your need of a well defined three-dimensional space and images,, and a transparent sense of "natural", or '"organic" seems to spell once again the name of the Rowland Capri S2... It can be had with -- or without -- the DAC card.

Others on the thread will have other suggestions... Sonic descriptions in words can go only so far... In the end, you might need to try things out, and see what best fits your musical taste.

Thanks for all of the suggestions. I'll make a decision on my next move after I receive the PS Audio PWT.

I had a PS Audio PWDMKII and it's an excellent DAC. I found the bridge was the best digital input. This was confirmed by several reviews on the PS Audio Direct Stream. The problem is bridge stability requiring frequent power restarts/recycles.

Volume is in digital domain so I prefer using a high quality pre with volume set to 100%.

Aerial 7T are very nice speakers.

If it was my system, I would start replacing your preamp. In your budget, there are many high quality units especially used. VTL, Doshi, Aesthetix, VAC ... Then get the Synchro-Mesh reclocker. It has a 30 days money back guarantee so only risk is shipping cost. If the reclocker works as advertised, it should be agnostic to anything feeding it.

Knghifi,

The PWD II is only 2 weeks old. It has pushed my system to a new level. Yes, there is better and/or different, but I'm not willing to play the game. I'll add the PWT and be content for now.