What to do?

I have 1600.00 to spend on a new source. I currently own a Cary 303/200 in a headphone system and I have a modded Phillips 963SA for my main system. I am going to keep the Cary for my headphones since I do most of my listening through headphones because of a wife and kids. However, when they are gone, it's on to the main system. I want to get the most out of it, so I was thinking about getting a new source to replace the modded Phillips. My main question is should I just get a DAC and use the Phillips as a transport, or would I be better off just getting a good redbook player in my budget? Thanks