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
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