I second the DAC. I heard the Wadia iTransport at CES through one of their own DACS, just as good as one of the players, which says a lot.
Next Step Advice
My listening is 50/50 movies/music, although, my first love is the music. I am seeking some advice on my current system (Rotel RB985 Mkii, Rotel RSP976, Wadia iTransport, Paradigm Studio 20v3, Paradigm Center CC470, Paradigm PDR10, Paradigm Atom v5 rear, Audioquest interconnects). I am not really getting the sound I would like and am ready to improve the musical quality of my system. I would like those of you who know about this kind of stuff to recommend best-bang-for-the-buck next purchase. By the way, I rip my CDs in .wav format for the best quality playback on the iTransport.