Best transport for USD500

I would second the Parasound recommendation above. Haven't heard the Meridian, but have heard a bunch of other transports and the Parasound is among the best I've heard. I am currently auditioning a DVD player as a transport and it is too early to tell for sure, but I think the Parasound, on an absolute basis, is better. The DVD player is much cheaper, of course. In regards to dacs, I have heard the MSB Link I (not III) and the Bel Canto Dac 1. I thought the Bel Canto was much better (smoother, richer, deeper bass).

Thks everyone for the inputs. Unfortunately, the brands some of you mentioned are esoteric and difficult to come by in my part of the world. I will look around to see where I can check out the Parasound. Anyone have the company's website URL?
Cheers

The Parasound would only be available used, as it has been discontinued. Probably best source would be here at A'gon. Sorry I was half asleep last night and forgot to mention that I have also gotten decent results using a Sony SCD-C555ES as a transport. This is available new for $600. However, there is a model C222ES that supposedly uses the same transport mechanism that sells for $400. You might even find you like the sound of the Sony's as well as your dac.

A sony dvps 7000 dvd player is popular for a CD only transport and was a very, very high quality unit; 200 > 300 used

I'd definitely go with the Bel Canto over the MSB. Don't recall if the 1.1 has jitter reduction, but if it does you may be able to get very good results using a cheap DVD player as a transport(you can always upgrade to a better transport later). Also, don't underestimate the importance of a good digital cable. I've found the Apogee Wyde Eye to be nicely detailed without brightness, and it only runs around $35 or so for a 1m coax cable. I got mine at Guitar Center(not many audio shops carry Apogee cables as their main business is in the pro area), and you may be able to buy it online from Guitar Center but I don't know for sure. Best of luck.