Just my 2 cents worth - Stick with a new or used CDP. The addition of a DAC to your existing CDP will require new cabling ($$$) and will introduce jitter.
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Redcarrera, you're CDP comes equipped with an excellent transport. Matching the CD1 with the ARC DACIII Mk2 would be about as good as anything you'll find anywhere near the price. The DACIII Mk2 is one of the most analogue sounding dacs I've heard. Tekline makes a digital cable that worked wonderfully with this combo, considerably better than the Illuminati D60 for a lot less money. The AES (balanced) cable was a little smoother, but I preferred the BNC version overall.