Help with decision...New CDP or add DAC to DVD?


My old 16 bit CDP just doesn't cut the mustard any more. I'd appreciate advise on whether to buy a new CDP versus simply adding a good DAC to my Sony DVP-s300 DVD player via digital coax. The latter would sure simplify things. Budget in either case is around $400. I've read somewhere that DVD laser heads can't really get the most from audio CDs...is that true? The rest of my system is simple; Parasound receiver and Vandersteen 3A speakers.
dwpc
One of my first upgrades was to add an MSB Link DAC to the Sony S300 DVD player. It was my first taste of "high-end" audio. From there I went through four more iterations of the digital front-end: MSB Link/McCormack transport, Roksan Caspian CD Player, MSB Link/Aiwa changer, and Sony C333ES SACD player. The SACD player is the most musically satisfiying player of all those I tried. You can find them for around $500. It's a little more than your budget. But having owned the same model DVD player and used it with an external DAC I think the SACD player is worth the extra $.
Sugarbrie, if it is just about reading smaller pits then I suppose 6 lb DVDs perhaps could sound good. I've tried two (pioneer and panasonic) that surely DON'T...even with a Bel Canto DAC.
Pretty clear to me that low jitter and clock timing issues are paramount to tickling our ear/brain successfully.
Hell, my 10 year old 12 lb Rotel 855 sounds better than these cheap DVDs. So much so that I had to get a 44 lb boat anchor (EMC-1) to get a quantum jump sufficient to please.
SACD's another story, of course....
I agree, that old Rotel makes a nice transport and is still quite good in its own right. The Pioneer and Onkyo DVD players have a very good Burr Brown DAC in them; the same one that comes in many very good CD players. The other budget DVD players are not very good. I have one of those Pioneer DVD players modified by Stan Warren in my home office system. It is amazing for the $450 I spent.
Thanks for the input...now I need to choose between an MSB Link DAC and the ART D/IO.
I know people who are familiar with both the MSB and Art, and they were comparing the Art to the Perpetual Tech P3--different sound obviously, but same general league. Not so for the base Link DAC. Go with the Art and save some cash.

Tim