New CD player or DAC


I am interested in "upgrading" my digital signal. I listen to "rock" music on DAT & CD (about 50-50) Right now I have a Tascam DAT & listen to CD's on my Sony DVD player. I was wondering if I'm better off buying a DAC like the Link III for both digital sources or purchasing the Music Hall CD-25 or Cambridge D500 SE. As you can see my budget is about $500.00. I have been getting into more CD music so I may start to use the CD player more than the DAT, but I still need the DAT for my personal recordings. The rest of the system is DNA-1, CJ PV10AL & Vandersteen 2ce Sigs with junk cables. I'm also open to other suggestions for DAC's or CDP's & realize I need to upgrade my cables as soon as I figure out which ones to start with.
fishwater
There are plenty of great 20bit Dacs on Audiogon right now that can be had for way under $500. The EAD dacs are great and used to retail for well over $2000 a few years ago. I also recommend the Bel Canto DAC1.
Bel canto dac1 will tune up your Sony's sound nicely
and later on you can always upgrade to the Dac2 and you
wont lose any $$$.
I have owned both a Link Dac and Bel Canto and much prefer the Bel Canto (smoother, with better bass). I used to think that good digital cables didn't come cheap until I recently tried the Phoenix Gold Drx910. Unbelievably good for $30. If you go with the Bel Canto, it may also work ok with a Monster lightspeed toslink cable.