TO DAC OR NOT TO DAC?


....that is my question. I have a Micromega Stage 1 CD player. I just read, in Stereophile, the review of the Musical Fidelity DAC. Add on a DAC, such as this, or upgrade my entire CD player? Which is the most cost effective way to go? It seems that this DAC, if it is cut out to be what it's supposed to be, is the way to go. Feedback about DACS, in general, would be appreciated.
whirshfield
I've never listened via an external dac. Therefore, of course I do not believe one needs the expense of an external dac. If the opposite were true I'd own one and my opinion would be different. :)

In all seriousness, I agree with the poster above that if you put your money into one appropriate cd player, then you probably have just as good or maybe even better with less clutter and cabling.

-IMO
Forgot to mention that the only single box cd player I have heard recently that impressed me was the Cary. I think it was the model#cd306.
According to Ed Meitner, using an outboard DAC increases jitter dramatically. He stated in an article online that the output interface circuit/cable/input interface circuit cause more jitter than any other cause, even the transport.In his opinion, a single box player with a good DAC stage is superior in performance to outboard units. This digital transfer timing error problem(jitter) is the reason you need a digital correction engine when you use an outboard DAC. The transfer induced jitter in two box systems is present no matter how good(or expensive) the transport and DAC may be. Unless the DAC has a digital correction engine built-in. Since jitter is one of the major offensive aspects of digital sound, it seems like a poor choice unless you are going to use a DCE along with the package. For the people going whole-hog with an Elgar or something, this is not a problem because the price of an extra DCE is negligable compared to the costs involved.(I don't know if the Elgar has a built in DCE or not) It would seem to me that for the price of one of these $12k DACs, you could find a one box player that has an excellent DAC stage that wouldn't create this jitter problem in the first place.
Twl answered some of my questions, thanks. Although the MF DAC is closer to 1k, adding a dac also requires finding the right cable and if a jitter reduction device is added, thats two cables and a lot of electronics added to your chain. If the MF DAC has its own jitter correction (dont know) it might be cost effective. I like Musical Fidelity products and use a MF CDP, so I dont mean to sound negative about this DAC.
So, if I have all this correct: If the Musical Fidelity has a digital correction engine, then this might be $1200 (less discount of course) very well spent. Also: forgive my ignorance, but I do not understand what jitter is, and how it is manifested in the music. How does it effect the music?