DAC or new player ?

CARL,I think that stand alone DAC's maybe start out as higher grade units(usually) that have key components that are of better quality than players like caps and resistors
and the really good ones are very expensive. I really don't understand it well either but it could have a lot to do with production but on the other hand a lot of stuff is being produced in China.So go figure........I just wish decent components were less expensive.
I originally started this thread because I wanted to embrace the digital way and was confused about the directions to choose from.I'm still up in the air about it all.

"I wanted to embrace the digital way"... me too! That's why I found your thread interesting. I wanted to buy a good CD player, but was told I might be better off buying a separate DAC for my Denon DVD player, until I saw how expensive they are.
Now I'm not sure what to do, as I just don't have the time nor experienced ear to spend hours doing listening comparisons.
Given that most DAC chips only cost a few dollars and only come out of a handful of IC manufacturers, and the associated components are even cheaper, I'd love to know how they end up retailing for so much more than some of the really nice integrated CD players, especially the sub $1000 category (Marantz, Cambridge, Rotel etc.)

Konky, check my system and you'll see what I'm using. Yes there are some really expensive DACs around--some expensive transports too--but never mind them. Lots of folks are very happy at the $1K level, less if you buy second-hand. I'm thinking of Apogee, Benchmark, Bel Canto. Tweak them with an isolation transformer or battery power, antivibration footers and a premium digital cable 1.5 meters long... see what you get.

A good transport at that price level is a bit harder to find. Some like TEAC VRDS, some like the Pioneer stable platter mechanism, some like CEC. For $500 - $1K you would have to buy used, and they are likely to be older units.

Tobias - Nice setup. Do you have a view on the Apogee mini dac versus the Benchmark? I'm thinking of going with the USB version of one of these.

Dokosan, thank you for the kind word. I didn't audition the Benchmark before choosing the Apogee because I was replacing an older and much-enjoyed Apogee model, the DA-1000E-20. As you very likely know, there are reviews on the Net but I've found only one head-to-head listening comparison of Mini-DAC and Benchmark and it's in a link on the Apogee site. So many people would like to have another one available that for purely altruistic reasons ;) I am tempted to do it myself.