Pioneer PD65 needs a DAC


I have a Pioneer PD65 that I have been using as it was intended, a CD player. I don't see (or hear) any reason to replace it as a transport, I would just like to hear if I can improve upon it with an outboard DAC. I have a pair of Dali MS5's currently driven by a pair of BAT VK1000 monoblocks that I might change to either Pass X600's or Elecrocompaniet Nemo's. I am also in the process of changing my BAT VK5i preamp to a Pass X1. I listen to Classic rock, Jazz, Vocal, Classical, most type's with the exception of current rock, RAP, Hip-Hop. Not interested in ruining my equipment. Because technology is always changing in this area, I don't really want to spend thousands. But if that what it takes, please don't exclude it from your recommodations. Any advise would be appreciated.
zippyy
Thanks again Rex for your input. I will look into some of the brands you've suggested.
Audioengr, I have a Sony DVP7000 sitting around, is it worth having any mods done to that? And then what DAC to use with it?
Zippyy - The 7000 is built well and makes a decent transport, although not as good as the 7700. I offer a digital mod for the 7000 that is not too expensive to make it a better transport. With the mod, you can safely use a 1m cable.

As for DAC's, I have not found a better sounding DAC than the Turbomodded Perpetual Technologies P-3A. It is around $2100 for a used DAC plus all of the mods. Other DAC's, even with mods, just dont match the dynamics and liveness of the P-3A. It truly sounds like live music, but without the HF harshness of typical stock DAC's. Also, it is one of the few that actually achieves 3-dimensionality. Many have P-3A's with others mods in them, but this is a different animal. It is on the same level as the Meitner DAC for CD playback.
I am using a Musical Concepts Epoch V moded PD65. If the soundstage was deeper, I would not even consider a DAC. The Stello 220DAC (upsamples to 192?) just got an excellent review in Soundstage emag. MSRP is a mere $1195. I am waiting for the next shipment (due any day).