Need Help with Dacs.

I am new to the forum. Need some info on dacs , as of now my sytem has Meridian 263 delta sigma dac,it has a 16 bit chip and it runs on a 44 KHz. My transport is a
Meridian as well model 208. For some time now I have been debating if a different DAC would make my system sound smoother? I run regular cd's nothing in HDCD or DVD CD's, just your regular type. My system consists of the following.
1. Meridian 208 transport.
2. Meridian 263 delta sigma DAC.
3. Classe audio model Thirty preamp.
4. Krell KSA 100 s amp.
5. Linn Keilidh Speakers.
6. wire world interconnects.
7. Ixos 604 ofc biwire speaker cables.

Don't get me wrong ths system sounds fantastic, but you know I have had the upgrade itch for many years,
I am thinking of maybe getting a Mark Levinson 36 dac
someone is selling it, it runs on 4 Burr Brown 20 bit chips. At the same time I also own a Pioneer Elite DV-09 and it has twin 24 bit Burr Brown dacs and runs at 96KHz.
I am not sure on what to do? I really don't know what the dac does other than change a digital signal to analog,
and why some are crazy expensive and others are not.

Please Help.

Build quality parts used and where its built.
I don't know that much about DAC's either, but will say that the Dodson DAC that I own makes a HUGE positive difference in my system. I got it for ABOUT 1800 or so and it retailed for around 5000. The unit I own is a Dodson 217 Mark II D DAC with updated 218-like software and a transformer upgrade It's been replaced in the Dodson line with the 218, which is apparently even better, and retails for more also.

The point: If you can find a used 217 Mark II D DAC with upgraded 218-like software and possibly the transformer upgrade, then I suspect that it's HIGHLY unlikely that you wouldn't be thrilled with its performance.

I could be dead wrong, but I doubt it, at least for this item. It's the real deal.
Hello Slates,Just a thought,,im not familiar with your equiptment so this is just me thinking out loud,,,a Monarchy Audio DIP did wonders for my setup,,if you buy one used you can get your money back if you dont like it,,they do sell very fast,,Ray
Bill,you did get a sweet deal!
There are a ton of great used DACs under $1,000. Audio Logic is one of them. Find an older 34 that has the chip upgrade.

Happy Listening.
I wouldn't concern myself with things like 20 bit dacs vs. 24bits. Consider the best sound quality for the amount you're willing to spend whatever the technology. JMO
In the price range spoken of above, and wanting a smoother sound, I wouldn't make a move without auditioning the new Lavry Black ($975) about which there is so much buzz.
Check out non-os DACs. To learn more about this design philosophy visit the Audio Note and Sakura Systems (47 Labs) web sites. These DACs are reasonably priced and you don't have to be concerned with bits and the like since they don't upsample or oversample. You can find several excellent brands between $500 - $1000 new or used.
Fellow A'goner: Wherever you find would be wise to test-listening first. Meridian 263 doesn't do upsampling but it makes music right.

Better try a different dig cable or transport or both.