Audio Note Dac 3.1 X balanced with ARC Ref 3 ???

I'm trying to reach a conclusion to whether I invest more in digital or that I have to go to analog. I've tried to find a new digital front end but I'm stuck at this stage and would be very gratefull for advice. My system consists of Lexicon RT-10/ARC REF 3/ Parasound JC-1/BW802D/ Cardas Golden Reference. I've now commissioned Audio Note DAC 3.1x balanced in my system combined with Lexicon as transport (AN Sogon digital cable and balanced hooked up to Ref3) compared with Lexicon's own dac. I found no remarkeble diferences with several test cd's (sheffield etc). Is it me (ears) or something else?
It may be you or something else. There is a marked difference between upsamplers and the AN on my system.
I have owned the AN 3.1 and 4.1, but found the best sound with a CEC TL-1 transport. I tried a Mark Levinson, Ensemble AN and toshiba transport with no meaningful improvement to justify the high cost. The CEC however, elevated the digital to a new level. IMO, the 3.1 with rolled tubes was better than the 4.1 which lost some of the relaxed presentation I had with the 3.1. You need the right power cords and digital cable. I used Purist dominus with fluid.

At the end of the day, I downsized my digital and put more energy into vinyl, which was clearly superior.

I am using the discontinued PS Audio Lambda transport. It has gained considerably in performance through some artful changes wrought by my amp and preamp builder. The AN/Lambda duo is a knock out combo.
I agree with Logenn, a better transport may help you out to some degree. I also downsized my digital front end and put my energies/money into analog after hearing the difference.