Point of Diminishing Returns?

My HT/Music Set-up:
Proceed AVP (processor)
Rotel RMB1095 200X5 (amp)
Musical Fidelity E624 (cd)
Sony DVP-S7700 (dvd)
Monster HTS5000 (line conditioner)
Sony 36 in. XBR400 (tv)
Definitive Tech BP3000tl (main speakers)
Definitive Tech CLR3000 (center)
B&W CCM 65 (in-ceiling surrounds)
and I'm very satisfied with my aftermarket speaker cable, ICs, PC, and component video cables.
Now that you know what I'm working with how well would a Sony SCD1 or 777 fit into my system? Assuming I went with the SCD1 would that same $3000.00 be better spent someplace else in my set-up? I'm quite happy with my current set-up, but I've been contemplating SACD since the beginning. Finally I am able to justify the expense based upon reviews found on this site and others stating that cd playback is as good or better as other players/transports in this price range. Thank you all in advance for your thoughts and opinions. One more question. If you have either of the units above and are not usind a DAC what connection methods have you tried and which do you prefer?
Does the Proceed AVP have a true analog direct? It might, I'm not sure. IMHO, I would advise redirecting the $3000 this way: Sell the Sony DVP-S7700. Buy the new Sony DVP-S9000ES. It has CD, DVD, and SACD. You will love it. I own one. The new 9000es costs $1500 list, minus whatever you get for the 7700. You can save yourself quite a bit of money on the player. This is just what I would do based on your surrounding electronics with no additional upgrades. If you bought the SCD-1 it would be way out ahead of the Proceed pre-amp and the Rotel amp. They are fine electronics, but the SCD-1 edges them out. I think the 9000ES would pair nicely with them. But, the main thing is for you to be happy with your purchase. If you want the ultimate in quality and sound, get the SCD-1 or 777. If you want to save some money, and get almost the ultimate in quality and sound, get the 9000ES. But don't let the fact that the 9000ES is a "cheaper" SACD player fool you. It does true progressive scan DVD, and in SACD mode it sounds better than pretty much any CD player on the market today (not the astronomically priced ones, but once fully burned in it bests my Meridian 508.24) Anyway, I'm sure the other patrons of this site will have a different opinion. Happy shopping.
Argent, you made some great arguments for the 9000. I will definately add that to my choices.

I agree with Argent. By buying the 9000ES and selling the old dvd you'd be out less than a grand. If you still have a couple grand burning a hole in your pocket, you could look at upgrading other things, like the amp or speakers. You say your quite happy so maybe you spend the extra cash on a vacation. I listen to 85% music (2 channel) and haven't heard a multi channel amp that sounds great in stereo. So I have a stereo amp for music and a multi-channel amp that I only use for home theater. This is just an idea, if your happy with the Rotel, enjoy, there's nothing wrong with being happy.
Sony is coming out with many more SACD players in many different price ranges. The above suggestion for the 9000 may be a good one. Stan Warren, Ric Schultz, and Dan Wright are all beginning to work on modifications for those units. Once they figure out the SACD technology, they will probably be able to make those units really great for CD and SACD.
What has been suggested here by others is exactly what I did. My previous player was the same as yours, a Sony DVP 7700. I managed to sell mine for $750.00, and bought the Sony 9000ES for $1050. This $300. upgrade was the best investment I have ever made. The difference in quality of the DVD movie playback alone is worth the price, and once the 9000 is broken in, you will never regret the performance gain it provides in CD playback. In my opinion, the SACD format is free at this point, and should you choose not to purchase SACD software right now, at least your options are open.
Get better speakers.....
I think I made an error. I see above that you own the Sony XBR400. Great TV. Almost bought one. I did buy the KW-34HD1. I then returned it because it would not accept 480p from anything but the HD component inputs--not the regular component inputs. I contacted Sony customer service to inquire which of their TVs accepted progressive scan from DVD players, and this is what they said:

The current model Sony Wega Televisions do not suppport Progressive scan
DVD players. The only two models of Sony consumer TV's that do are
Projection TVs: KP53/61XBR300 and KP-53/61HS10 through the HD component
input they display 480 progressive as 480 progressive.

The 65" KWP64 HD1 HDTV can also display 480p as 480p.

That is why I did not buy it. I bought the 55" Mitsubishi Diamond instead. Unless you can verify that your set will support progressive scan from a DVD player you will not be able to get the full benefit of the DVP-S9000ES. The interlaced image is great, but progressive is killer. I think my suggestion about upgrading the player might not be so good after all. Unless you don't really care about progressive scan and really want the SACD. You could also upgrade the TV. Hate to have to see you do that.
Thanx for all the responses! Keep 'em coming.
I received minus votes for expressing a positive opinion about the Sony 9000 ES. Did any of the rest of you get punished for suggesting that option to Once bitten, the creator of this posting?
What's wrong with the Sony 9000ES? There are not too many other reference players out there. And even of those, while the DVD video might be better, Once bitten has stated that he wants the SACD feature. Now I might be wrong, but I think the Sony is the only DVD player to offer this option.
I agree with going to the Sony s9000es. I upgraded from s7700 and even with an old Sony Trinitron the picture was better on DVD movies. The cd playback is more than I could have hoped for. It is worth the money without the SACD, with it, it's an easy call. Albert, I bumped you back up :>
I haven't recieved any negative response Albert, I'll give you some positive to help offset it. Why would someone give someone negative feedback for making a friendly suggestion? Albert's writing style was not insulting or nasty, c'mon boys and girls, play nice.
Don't worry albert. There is some person or person here who does that to all the posts. I voted you up too. You're a tremendous asset to this site.
My sincere thanks to all of you for your support. It is odd that someone would vote negative solely based on my choice of equipment. A more constructive approach would be for them to post in opposition, allowing everyone to consider their point of view. It appears most of you agree, as many opinions are expressed here, making this site lively and informative. I hope it remains that way.
Al, don't sweat the negative votes. You neither said or did anything wrong. It take all types and the party that voted negatively on your post was of the non-intelligent, low life and immature type. Enough said, I think I will get about 100 negative votes for this but I was happy about getting my feelings about this voting thing off my chest.