In my experience, I've found that THD (total harmonic distortion) and S/N (signal to noise ratio) are the best indicators of sound quality - newer chipsets, increased power supplies and DACs notwithstanding.
For example, the Cary 303 has a spec'd THD of 0.0008%(1 kHz) and a S/N of 120 dB(1 kHz). The Cary 306 has a spec'd THD of 0.0008%(1 kHz) and a S/N of 122 dB(1 kHz). On paper, the 306 should sound a tad better because of the higher S/N - the THD is the same. This appears to be the consensus of posts I've read about the two players. I've heard both myself in a side by side comparison and the 306 was just a little bit better, but not much - IMHO the sonic differences were so slight that the 306 didn't merit the increased cost.
I think folks get so caught up in the chipset/power supply/DAC "thing" that they disregard basic sonic measurements. These measurements are quite palpable. IMHO, all the commotion about SACD vs. DVD-A vs. HDCD vs. Redbook CD is just a bunch of hooey. I don't think format should be the deciding issue. In fact, one can read about many instances where a high-quality CD player (playing Redbook CDs) sounds better than a lower quality SACD player. Most times, the quality differential is in the sonic measurements of the machines, NOT the chipsets, etc.
In short, first look to the specs. of the player(s) you have in mind(regardless of format) to weed out inferior machines. Then, A/B audition (if possible) to choose what sounds best to your ears.
For example, the Cary 303 has a spec'd THD of 0.0008%(1 kHz) and a S/N of 120 dB(1 kHz). The Cary 306 has a spec'd THD of 0.0008%(1 kHz) and a S/N of 122 dB(1 kHz). On paper, the 306 should sound a tad better because of the higher S/N - the THD is the same. This appears to be the consensus of posts I've read about the two players. I've heard both myself in a side by side comparison and the 306 was just a little bit better, but not much - IMHO the sonic differences were so slight that the 306 didn't merit the increased cost.
I think folks get so caught up in the chipset/power supply/DAC "thing" that they disregard basic sonic measurements. These measurements are quite palpable. IMHO, all the commotion about SACD vs. DVD-A vs. HDCD vs. Redbook CD is just a bunch of hooey. I don't think format should be the deciding issue. In fact, one can read about many instances where a high-quality CD player (playing Redbook CDs) sounds better than a lower quality SACD player. Most times, the quality differential is in the sonic measurements of the machines, NOT the chipsets, etc.
In short, first look to the specs. of the player(s) you have in mind(regardless of format) to weed out inferior machines. Then, A/B audition (if possible) to choose what sounds best to your ears.