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

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.

Thanks for the kind word, Conscious. Your question required me to get my own ideas together, and I enjoyed my shot at that.

I see that you have already done a great deal of good research. Your upgrade path makes sense, certainly. May I say, though, that unless you know you will be coming into money, at the moment it is more fun than serious? I had my own upgrade path all planned out too. I had the amp, I had the preamp, speakers were narrowed down to only five or six choices, I knew what was next. Then UPS put a spell on me for more than six months with their horrible claims process. Then I made a friend whose second-string preamp blew my first-string, preamp-for-a-thousand-years, right out of the water. Then... well, my upgrades since then have depended on serendipity and my own ears, and I no longer know what's next except in a "that's-nice-in-principle" sort of way.

It takes a long time to get used to changes in your music system. A new component can make you want to listen to every piece of your software twice over again. That's the very best part. When that happens, I realize that other people are way ahead of me, some manufacturers especially, and I will be upgrading till the day I leave the planet.

It's great that you already have a component to shoot for ( the AN DAC ). If you can't go for your Audio Note 2.1 now, though, how long can you wait and still spend time with music at home happily? Dwyoung and Dmitydr suggest a good reason for a one-box for now. I understand what you say about the two entry-level players I suggested, and I don't think they would sound lots different in your own system ( try to evaluate new components with what you have whenever possible ). You might consider a used Shanling CD-T100, there are some deals here at the moment ;-).

Thanks again for your input. I certainly have come across the "best laid plans", challenge. I was recently offered a Jadis Integrated Orchestra amplifier at a very, very good price and I'm finding it hard to stick to upgrade path. My path is based more on principles than components right now. Certainly, I could take a giant step and select 3 components at my intial upgrade phase but that would upset the budget - read wife. I am therefore consigned to upgrading a piece at a time. What may present as a great speaker now, might seem less so down the road when I upgrade that component. Therefore, I get to continue enjoying the journey while saving for my next purchase.

As far as falling into money - that's unlikely. However, if I can save about $160 a month, I'm able to meet my 20k objective in about 10 years. I don't plan to wait that long to drop the money - I enjoy the tinkering too much - but given my income, I don't think it will be a challenge. This means a new source this year, integrated amp the following, speakers the following, etc. If I'm able to purchase wisely, then I hope to lose only about 15% on resale of my used equipment. Therefore while spending 20k, I hope, in the end to be able to purchase gear for around 17k. But if someone makes me an offer I can't refuse....