New amp or new cd player?

Yes a top tier front end will yield dramatic improvements.Feel free to send me a pm and I'll provide some specific recommendations.

I agree with the general sentiment. It's garbage in / garbage out, and you want the source to produce the best possible sound.

But when you consider your budget, and if you want to stretch $1500 as much as you can, there could be better ways to spend the money than buying a $1500 CDP. For example you can allocate $500 for a budget entry level CDP with good modern DAC, and upgrade your $1500 amp to $2500 amp.

In my previous experience, I've heard more variety in sound of amps under $3000 than CDP under $1500. Amps in $2000-$3000 range tend to differ in sound from one another. Modern CDP under $1500 tend to sound more similar than different. Notable exceptions are exotic DACs (NOS, tubed), or older generation (early 2000's or older) models.

IMHO the balance among the components is just as important, and you don't want to over-invest in one component.

Jylee: Assuming all entry level cdps around 1500-2000 sound the same, i would also assume they sound much better than my 150$ onkyo dvd/cdp?

i am more confused now because it seems everyone has a different opinion, and i pretty much have different people suggesting almost every possibility. haha. not that im complaining. i am glad to have so much input on this topic. thanks everyone.

Definitely do your front end first.

Although I have also read that a decent cdp used as a transport, and a dac such as the bel canto dac 2, sound nearly as good as some of the very good cd players out there.

You might also want to look into PC Audio if that holds any allure to you (having your entire music collection at your fingertips. If done right that method can also sound better than "very good CD players". Yes, you certainly could get a nice DAC and use your current transport, or a better one. A great DAC will make a significant difference to my ears. I don't know how discriminating you are. My wife couldn't care less about this stuff and claims to hear little difference. It's in the ears of the beholder, as it were. It would not be difficult to improve upon an older Onkyo DVD player IMO. To clarify what may be confusing you: Your CD/DVD player already contains a DAC inside. If you used it as a transport you would be bypassing the use of that internal DAC by sending the digital output signal to an external DAC (assuming it has a digital output) via a cable. By all means, it can make a big difference. I'd probably go for a better transport too, especially if yours is old. If you don't have much experience in these realms, I'd suggest you go to a dealer, or to an audio show where you can hear a few examples and see if the differences made in an investment in your front end actually matter to you (or that you can hear them at all). If you have a friend, or a local audiophile club, or anyone who might be patient enough to demonstrate to you what potential may be there for you that would be a big step in the right direction and may save you money, and or open up new worlds.

Assuming all entry level cdps around 1500-2000 sound the same, i would also assume they sound much better than my 150$ onkyo dvd/cdp?

I didn't say they sound the same. It's all about the diminishing return of the investment. What I have suggested is to spend around $500 to buy an entry level dedicated CDP, and use the rest on other area. CDPs with modern design and good quality parts such as Cambridge Audio or even Onkyo DX-7555 are very well received, and you'll probably hear immediate improvement. However, the incremental difference in sound quality between those $500 CDP and $1500 CDP is probably going to be smaller than the difference between $1500 and $2500 amps. If you have higher budget, say $3000, then sure, go ahead and buy $1500 CDP. If your budget is $1500, don't spend them all on one component.