Add DAC or mod player?

IMO, the Arcam you have is a very good player and you might end up preferring it to mid-priced dacs. Unless you just want to buy used and fool around with different DACs, I wouldn't buy something I couldn't return.

I'd experiment with some good, used DACs or demo some new ones rather than pump money into an older CD player. It can also allow you to start to explore hi-res music at some point if you want. Best of luck.

I also owned the Arcam FMJCD23 for several years. A couple of years ago I tried several DACs in the >$500 range (used). I ended up with an Audio Mirror D1 that had been fully modded by Reference Audio Labs. It was way more what I was looking for in digital and soundly outpaced the Arcam. I agree with Mattmiller... find a newer DAC you like and transport the Arcam.

Usually the 1st thing to fail in a disk player is the transport (mechanism, laser) . I would put my money into a DAC rather than upgrading older player. You will have greater flexibility down the road with a DAC. When you need to replace the transport, this can be accomplished at less expense as you already have a good DAC.

I feed my Arcam DVD137 to a Bryston BDA-1 for CD and DVD playback. Direct to Pre for SACD. The DAC is also used for computer audio via USB/SPDIF conversion.

The Chord Qute may be a very good choice. Among other things, it seems to have reclocking to hopefully manage the very high jitter that you can expect from the CD transport.

You could also leave your Arcam attached to the digital coax input while running hi-res computer feeds via asynch USB port.

But don't be too surprised if your standalone 23t with its classic dCs Ring DAC technology still holds its own for 16/44 playback.

This should be interesting. If you can, please post your decision and impressions.