Upgrade Help: CDP or DAC

I think the answers here will be to buy a DAC and use the Marantz as the transport..that's what I would do. (For $700 you would not make a significant upgrade with a new CDP).

Try looking thru the archives for opinions on a new DAC; the forum is full of DAC threads. For a tube DAC at a good price take a look at the Jolida.

http://www.musicdirect.com/p-106207-jolida-glass-fx-tube-dac-ii.aspx

I like my parasound z dac quite a bit. It sells for $500. I've compared it back to back with a cambridge audio dac magic, a musical fidelity v-dac ii with pangea p-100 power supply, and a musical fidelity m1 dac and the parasound is waaay better. Very organic (not digital at all), wide wide soundstage, and great bass. I think you would like it. Try it from audio advisor and return it if it doesn't work out :-)

Thanks for both of your Input.

If I use my CDP as transport will the DAC really be able to calm down the edge and bright leaning marantz.

The DAC has a lot of potentential, in that regard. There are many different designs around. The old thinking that a tubed component in the chain can take the edge off is still widely held and their are many tubed DACs to choose from.
I think you might be happier with a softer, sweeter CDP from manufacturers such as Rega or Cambridge. There are others but I just can't think of them at the moment.
As suggested a search on the topic will likely yield a ton of old threads.

I think you will really be better off with a tubed DAC if your goal is to reduce listener fatigue caused by harsh upper mids and highs. But be careful. Unit selection and tube selection is very important to achieve this. Out of the box a tube unit can sound just as bright and fatiguing as a SS one. The essential difference is that you can change a tubed DAC's sound by simply changing the tube(s).

A recommendation - find a used California Audio Alpha or Sigma DAC and play with it and your Marantz. Be prepared to change tubes a bit. I have used both - the Sigma is cheaper and for all pratical purposes just as good as the Alpha. It only has one tube too. I presently have one set up with a Cal Delta transport in my Headphone system. I found that it sounds best with a JJ 12AX7 (an inexpensive new production tube). Compared to my Marantz SA11S3 this is warmer in tone and certainly not fatiguing at all. You could probably find the Sigma for sale on A-Gon, if you are patient, for $200, and better yet you could probably get it with a matching Delta transport for less than $500. And if you don't like it it should be easy to resell. They are still popular.