New DAC or New CD Player

I have a Micromega Stage 2 CD Player. I was thinking of using it as a transport and spending around $1,200 for a good DAC. Is that a good way to go or does it make sense to buy a new all in one player? I guess what I'm asking is how much of an improvement can I expect over my current Micromega 2 by adding a good DAC. This would be my first try with seperates and I'd like some feedback on what to expect. Also can anyone suggest what products in the $1,200 range might work best with my Micromega as a transport. Thanks, Rob
Rkuryl - Separates are the way to go if you intend to push toward the upper fringe of hi-end audio. In your case, sell the Micromega (this is not a knock against the Micro) and use the additional funds to by a used (~$1750) Cary 303 CD player. This is the latest CD from Cary and it is incredible for the money. Unless you can spend $5K for separates, go with the Cary. It is that good. I own $20K transport/DAC combo, and the Cary can still hold it's own. Don't worry over it, just watch the ads and buy one when it shows up. You'll love it. Goodluck.
I once owned a micromega stage4 and did use it as a transport. I think if you want to keep the micro then get a GOOD dac. I do like the idea of the micro shuting down the outputs when using the coax out. Plan to spend more on your dac purchase to make up for some of the negetives the micro has. Best of luck
You can find a used Pro Basic IIIA used for under $1,000. It is clear, dynamic and lifelike. I would recommend using a true 75 ohm digital cable to connect the two, such as a D. H. Labs D-75. 75 ohm BNC connections are preferred. "Jitter" boxes will improve the sound also. I am currently using two Theta TLCs in series followed by a Monarchy DIP MkII and then the Assemblage UJB-1. The Assemblage had a list price of $500, but recently closed out in auctions for $150.
The Classe DAC-1 is a great one for the money. Talk to JM Sound for a good deal.