I have the pioneer 525 and your right it sucks. It was to timid and lifeless sounding (before being broken in though it was really really bright). Now I have a resolution audio quantum DAC ($3200 new) that sounds absolutely amazing with the pioneer as a transport but before that I had an Audio alchemy dac-in-the-box. I picked the AA up for $50 and it made a huge difference. But I did have a $325 digital wire. You don't have to spend that much on a wire but at least find one with a solid core and you'll be in good shape. You'll be real happy with a transport and DAC combo so I say difinitly go for it. You won't be sorry.
2nd hand DAC for DVD/CD Player
I purchased a Pioneer DV-525K a few weeks ago to replace my ailing Sony ES. My current system is Musical Fidelity MA-65 monoblock (class a), C1 Carver Preamp, Celestion SL6si with Target Stands. When I plugged the Pioneer DVD DV-525 to my audio system and put a CD I was so disappointed with the sound!! bass is so lean and sound is so unrealistic compared it seems like it is the worse sounding CD player I have heared. I was considering a meridian, audio alchemy ddi, soundstream dac-1 or any dirt cheap dac, or musical fidelity x-dacs! What would be the best DAC under $150 used. Can a DAC really put my DVD player to life even when playing music CD's, will the 48khz DAC work with my 96-24 DVD player. I would appreciate any help since I am in-experienced when it comes to DACs. thanks.