DAC on Universal player

You would only benefit from this if the DAC were of higher quality than the internal DAC's in the player itself and there were minimal amounts of signal loss and jitter introduced via the digital cable used. You might be better off having the player itself modified. This takes advantage of a shorter signal path with less connections while taking up less space on your rack. Sean
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Yeah, what Sean said....but, not SACD because, I dont believe the 2900 can output SACD in digital.

If all I'm trying to do is get smooth sound on redbook, wouldn't it be cheaper to pick up a Cal Labs Ikon MKII or Shanling CDS-100 and strictly use it for that?

Yes a DAC can improve your redbook, but will definetly do nothing for SACD as this is output , only from the analog outs of your Universal Player.

what DAC's would improve the redbook on a Denon2900?