New CDP or DAC for budget system?

What would you guys suggest would be the best way to upgrade the CD performance of my system? I am currently using a Sony DVP-NC655P DVD player to play CD's. I have maybe $100 or so. Would I do better with a CDP such as the Denon DCM-370 or with an external DAC? My other equipment is:

Speakers: JBL S-38
Reciever: Sony DA4ES
Low-end Tara labs speaker cable & interconnects


Buy some new CDs. (Try a few XRCDs in particular.) Definitely more value added than any $100 hardware upgrade.
I agree with Bomarc. Besides CD players and DVD players will sound very very similar with your current amp and speakers.
An external DAC using a DVD as a transport is a crapshoot as the quality of the digital signal from the transport may undo all of the good qualities of the DAC.
And to really upgrade the CD source you'd need to spend nearer $300, rather than $100.
There is this thing by Z-cable that I saw on Audiogon ads. I think it is some ERS tube made by Z-cable and costs $99. Try it out and tell us what you think of it.
You might be able to find a used MSB Link dac Mk 1 or Mk 2 for just a little more than $100. It's probably the only used DAC around that price that would be a decent upgrade in sound from a mass market DVD player.