Hard Drive based system


I've read all of the threads I could find on a "server" type system. I plan on running a hard drive, to a Waveterminal, to a DAC. My question is, can a system like this sound as good, or better than, my cd player? Is it all up to the DAC?

I currently have a Marantz 8260 CD/SACD player.
ecruz
My Sony got delivered to Paul at TRL today. He said 2-5 days for the mods and then back to me. Hopefully by this time next week it will be well on it's way to me.
Ecruz,

I couldn't resist and I bought one as well. I'll probably send mine out after the New Year.
Clio-
I'll let you know what I think once it gets back to me and burned in. If it's half as good as Paul says, I'll be very happy.
As soon as I finished my previous post the phone rang, it was Paul at TRL. I had asked if he could install a digital input on the player. He said it had never occured to him to put one in his mods, but they would look at it and if it was possible, they'd install one! I would love to be able to use this as a DAC too.

He said it would be on it's way back to me possibly Fri, Mon at the latest.

I have an Alesis Masterlink as well. If you were to
use it as "the hard drive", what would you have modified
on the box? Would it not be taking advantage of bypassing
the whole "laser reading" process as well as the DAC?

I use the balanced digital out to a Mark Levinson DAC
and it sounds very nice.

The track names and playlist features of the Masterlink
don't compare with that of a server/client package like
Squeezebox however.

Thoughts?