Nicodemix,
I am also on the same boat as you (seems the Rotel is a freight cargo boat LOL), I am arranging a whole new system with a digital amp, and I am looking to upgrade my trusty source (1072). My first option was to get a very good DAC since I also want it with my Squeezebox, started looking at the Dacmagic but slowly made my way to a $1000 budget (benchmark 1, wyred dac1, etc). On the other hand, I also find the 840C a great option, since it seems to combine a nice player, and a great DAC that I could use for my squeezebox. I just cant figure whether the Rotel + good dac will be any better than a 840C.
Also looking for warm sound, I plan on tweaking with a tube buffer in between.....