Good cd player and a great DAC or great cd player?

Upgrading from a $1k system to $20k system is a big step. Unless you inherit some money, you may not want to go from your former CD changer to a $2.5k CD player (or separates) simply because until you upgrade some of the other components, you will not hear all the differences in quality the extra money is paying for. And, until the rest of the upgrades are in place the player is depreciating in value and technology is progressing. I would buy a good used CD player which can be sold in a year or two at around the same price you paid for it.
That being said, I would recommend an all-in-one CD player. I had separates and went back to a one-box unit (resolution audio opus 21) and am very happy.

Agree with Bwyoung. I'm not also sure whether just a straight listening would help. In order to evaluate a real difference between two very good components one should know what details to pay attention on, and it's not obvious when go from $1K to $20K level. Criterias of what is a 'good sound' should be adopted to a new quality level. All this just requires a lot of time...

In regards to CDP or DAC+Transport, I was recently looking for the answer on a very same question, one very experinsed person gave me an idea, for which I still feel obliged to him. He explained that while I consider myself on a budget (whatever it means for me), it worth to get more upscale integrated component then two cheaper separate ones. After some listening I realized the wisdom of this rule (there are some exception, such as power requirement for amplifiers, if one need it). It saved me money and I'm happy with my sound. Just my humble opinion.

Thanks for your input. I should clarify that the 20k system will be a work in process over several years. I have heard those systems (and several at the 5 and 10k level) and enjoyed myself immensely. On the other hand, I know that dropping that number on my wife at one time purchase would lead to a quick divorce settlement, LOL! In the meantime I have considered an upgrade path that will give me greater musicality without a lot of lateral moves that will surely end up costing me more money in the long run. To that end I have thought of an upgrade path such as:

1. 2.5k cd player
2. 2.5 k integrated amplifier
3. 2.5k speakers
4. sell the source and purchase a 5k cd player
5. 5k preamp
6. sell the integrated amp and purchase a seperate 5k amp
7. sell the speakers and purchase 5k speakers

Make sense?

Tobias,
Wow, what a detailed reponse. I really appreciate the time and consideration you put into that. I've actually spent a bit of time listening to a number of sources, amps and speakers and have concerns about taking what I think might be a small step up with the Music Hall or NAD cd players. I've heard Music Hall and found it not to my liking with several different speaker (ref 3a, Totem, B&W NT's) and amps (Shanling, Linar, Passion). In every case I found excessive sibilance and a tendancy toward a bright presentation. Quite surprisingly, my current system is acutally musically fairly satisfying. I think that the NAD receiver and PSB speakers may err on the side of warmth which may mask some of the harshness associated with my entry level Marantz source. I know I'm not gettin gthe level of detail that I aspire to, but it's not to the point that I have to use it only for background music.

The source that I have most appreciated was the Audio Note 2.1x. To a lesser degree was the Musical Fidelity a3.2. Both made a significant impression and upgrade over my current sound. Did I just answer my own question? LOL! Are their other sources in between that I should listen to that might help on the cd player vs. DAC question?

There is no single answer. The best thing to do regardless of how much money you want to spend is to go out and demo several CD players that interest you (based on research or recommendations or just what's available locally). Demo at home if at all possible.

Another related point is that if you are upgrading all of your components at the same time it's hard to judge whether you like a single component or not. I would recommend you upgrade one component at a time, including cables. Spend time with each change and this allows you to indendantly judge each one.

Based on my experience there different levels of quality but also different sounds. Through trial and error I've found something I like, which happens to be a seperate DAC and transport, but there may be a one box player that floats your boat. Each has advantages and disadvantages.

The dedicated transports, for the most part, use the same transport mechanisms as the single box players. What you get, however, is an implementation focused on the goal of reading data off a disc and spitting it out through a digital cable. Often times transports have better power supplies or higher-quality parts. Some, like CEC, do have unique transport mechanisms.

Finally, hi-fi bliss doesn't have to cost $20,000. It can come a lot cheaper.

Consciousness, Yes you did answer your own question : ) If you get an Audio Note DAC and any transport you can then upgrade the DAC (or transport) over time as you see fit. I have the AN 2.1x Balanced DAC and it was a great discovery. I love it! There are a few used available here on Audiogon right now. I have an Accustic Arts transport on order.