The Bel Canto Dac 1 is an upsamlling dac and would probably work well with your DVD player, particularly its toslink output. It should give you a significant improvement. Unfortunately, the Bel Canto lists for $1,295 but is available used for $900. If $900 is too much, there is a dac called the Birdland Odeon Lite, which I think is around $800 and is also an upsampler but I have only read about it.
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