Digital or Analog section of D/A convert

I'm looking into buying a digital processor. The market on websites such as this makes it confusing to me. my goal is to stay under $1000. For this money you basically could look into a newer used MSB, Perp. Tech. or Bel Canto processor with the latest digital upsampling technology.
I also look at the other direction I could go, a older used
Sonic Frontiers, Theta or Proceed. My listening is 90% music and 10% movies, for this reson I decided to go with an older processor ( Proceed PAV) which sounded better on 2-channel then the B&K or Adcom withthe more advanced digital processors. My question is this, would you be better to spend your money on the digital section or the analog section of the D/A convertor? Since I can't afford to do both I must make a choice. I like the Sonic Frontiers SFD mkII which can be had used for about $700 used. It has the great tube analog section with balanced outs but won't work with DVD. I hate to spend much on digital because the technology changes so rapidly that a $2500 processor in three years is worth only $700 but I need to improve my current setup. I just sold my McCormack Prism II CD player to help with funds to set up a Home Theater system (Proceed PAV and Classe CA-200 and CAV_75). I miss the McCormack though as now I listening to CD's on a Proscan DVD player which is not near as good on CD's. If it was your money would you spend it on the digital or analog section of the D/A convertor? Thanks in advance for your time.
Just to help you out with the language; A stand alone processor is for decoding movie audio/ into 5.1 ( It does have dacs in it---this in reference to the "Pav" piece) A "dac" is for converting digital 2 channel audio to analog.All the other pieces you mention are 2ch. "dacs" As you have already found out,the transport matters. The 24/96 MSB piece will help your 2ch. sound. You can hook the msb analog out to the analog input of the "Pav" I'm actually unclear if you already have the pav. If your proscan piece has a digital out;you go into the menu of the player;fix the output to 48,and thus be able to use it with an upsampling dac.
Pardon my language, I was really into high end audio in the late 80's and early 90's but do to family situation have been out of it for about seven years, that seems like a lifetime with digital. I do own the Proceed PAV and I like the way it does 2-channel audio beteer than other preamp/processors in my price range ($1k-$1.5k used). The Proscan has a digital out in fiberoptic. Avguygeorge, you sound think the digital section is the way to go, is that correct? Thanks for reading my thread.
In your case,given your budget;I would say yes. I'm sure the Pav is a good piece. Not having a "coax" digital out,from your Proscan,and I believe your Pave doesn't have a dig. in (am I correct?) the MSB, or a decent 2ch. dac will help. The other choices will involve spending much more money. I am just guessing, and putting together what you said about the Proscan piece yourself;A better dvd player would help a lot.I just bought a Sony7700 2 weeks ago, for 400./at this sight.It does have a coax dig. out./and isn't to bad from the analog outs as well. Such a piece might be the place to start.It all takes money/ but the right choices help stretch your budget.
I've always been of the view in the past, at least before the advent of 24/96 audio, that the analog stage and power supplies of a DAC were more important than the digital side. I still feel that way when comparing redbook CD and 24/96 players and DACs vis-a-vis each other. However, in your case, if you want to take advantage of 24/96 audio, whether through "upsampling" or a 24/96 digital signal, the digital side seems to be more important as Avguygeorge states, and an msb, Per. Tech. or Bel Canto would seem a good way to go. If the Proscan does not output a 24bit/96khz signal, you might want to consider down the road getting a DVD transport which will output a 24/96 signal, such as most Pioneer models and the newer Marantz players, to take advantage of discs and DVDs which contain that format.