Add DAC to Philips 963sa or Arcam DV-88P ???


I apologize in advance for the length of this post, but I really need your opinions here --

My setup: I have a both a Philips DVD-963SA SACD/CD/DVD player and an Arcam DV-88P CD/DVD player. I use them for ALL formats listed - SACD & CD for music and DVD for movies. I listen primarily to fusion jazz, blues & rock. I only have a couple SACD's to play so far.

They feed :
-Anthem AVM-20 pre/pro
-Pass Labs X-250 & X-3 amps
-Martin Logan Aerius i/Cinema/Stylos spkrs (currently - see below)
-Martin Logan Descent sub (using low-level inputs from the preamp for 2-chnl AND LFE)

NOTE - I will be receiving a pair of Talon Raven 2002 speakers with CMRC crossover upgrades very shortly, to replace the Aerius as front mains. I know - this is a BIG change, replacing limited-range stat hybrids with full-range dynamic box speakers - we'll see how this goes...

My Questions:

--Should I add a quality DAC to either or both of these sources?

--Which player would make a better transport for use with a dedicated DAC? I understand that DVD players inherently make good transports, but have also heard rumors that neither of these particular players work that well in this respect.

--Should I forgo adding a DAC, sell one player and use that cash to simply upgrade to a better one-box CD player, leaving DVD duties to the remaining one? I am thinking most about a used Electrocompaniet EMC-1 24/192, but would consider others ($2300 or less).

--Given my configuration, would it be best to get a DAC/player with remote-controlled volume and connect it DIRECTLY into the balanced inputs on the Pass X-250 amp, leaving the RCA's to connect the amp to the pre/processor? This would eliminate the Descent sub from 2-channel use, but the Talons are supposedly terrific bass providers (rated to 17hz), so this may not matter. If so, which DAC/player would apply?

If I go the DAC route, here are my requirements:
-24/192K upsampling (or at least upgradability to that later)
-Home Theater digital pass-through
-Balanced outputs
-A NOTICEABLE upgrade in sound quality over my existing players

$1700.00 is about my limit (used or new), and I have so far researched the following:

-Pass Labs D-1 (which is only 24/96 at best and somewhat out of my price range)
-Electrocompaniet ECD-1
-Musical Fidelity 324
-Birdland Odeon Ag
-Perpetual P-3/P-1/Monolithic PS (Modwright Sig 1)
-Scott Nixon TubeDAC+

I know that I am all over the place with the options I am considering, but would appreciate some guidance from the 'goNNers here!

THANX!!
bhouser
Wellfed-

I have entertained that option as well. Ric's upgrades sound tasty, but the interior shots on his website look pretty 'homegrown'. Here are my concerns with such mods:

-The mods are safe for the long-term - No electrical fires or busted player wanted!
-They make the big improvements he claims - enough to forget the mega-dollar players/DAC's
-The 963 is a good-enough starting point to warrant spending double (!) what the player costs on mods

Having said that, I guess this option would allow me to simply sell the Arcam and all formats that I use are still covered by this one player without adding the complexity of an external DAC.

--On another note: My listed 'requirements' are not written in stone, just semi-educated assumptions on my part.
Ric is pretty impressed with the upgraded performance of the Philips unit. As is often the case, I haven't heard one myself. I don't know if he offers a balanced differential output option. I would think he could give you some references regarding performance and reliability.
I second modding the 963sa as a great choice.
As the first to try the Blackgate vk150/350v ps cap upgrade and post the info on 4 audio boards,I have had dozens of people email me and tell me that they can't believe the difference this one 23.00 cap makes.
Just think what full mods will do for the 963sa.
Another source for 963sa mods is www.asi-audio.com

Whoever you have mod it,you will have no regrets.