Digital Purchase Advice . . .DAC or New Player


I'm all over the board on this one. . .

I want to upgrade my digital platform and of course, I want the best performance for my dollar. I currently have a 16 year-old Philips 5 disc carousel and a Denon DVD-3910. Obviously the Philips is sub-par as a player, but can serve as a transport for casual listening. The Denon is a decent player and can also serve as a transport for more devoted listening. It also decodes HDCD which is a must for me.

I've been looking at the Cullen level 3 PS Audio DLIII as an option, but was wondering if I'd get better results going to a new player. On that front I've been considering the stock Raysonic CD-128 or the Moon modified Original CD-2008 MK2. If I go with a new player I would use the balanced outputs to feed a Pass Labs X-1/X250 driving Thiel CS1.6s. My musical tastes are rock/jazz/classical.

Would I get better performance and musicality from the DAC or from a new player?

Any and all feedback is appreciated.
catastrofe
I HIGHLY recommend a MHDT Labs Havana DAC. I cannot believe that for $800.00 the DAC sounds as it does. Simply stunning- and I've had a few Digital front ends in my day.

You may want to check it out.
I use Bel Canto DAC3 and it is very good. It also has its own preamp section with a nice volume control.

You will get more flexibility if you go the DAC route.
You can have more than one digital source with a DAC3, i.e laptop, Squeezebox, transport, etc.
I have a Denon 3930ci in my H/T and have tried it hooked up to a PS Audio Digi link lll with stage lV mods with a V/D David digital cable, I don't think it betters the Raysonic 168. I think you should buy a good used player (ARC,BAT,ETC), what's your budget?
Thanks for all the responses.

Jhold and Bob_reynolds (the president of my company is Bob Reynolds!!!). . .I considered the Benchmark but the modded DLIII seems like it provides better performance (albeit at a higher price).

Elevick. . .I agree that the stock Denon sounds pretty good.

Danlib1. . .the Havana certainly looks nice for the money. What have you compared it to? There isn't a lot of information out on the web. . .

Audphile1. . .I really like Bel Canto products, particularly their look. I was considering the CD2 and/or the DAC3 but the CD2 doesn't do HDCD and it seems like the DAC3 can be bettered by other less expensive units.

Samhar. . .the Raysonic 168 doesn't do HDCD so I would go with the 128 if I went Raysonic. Raysonics look great and seem to be built like a tank.

Anyone have any experience with the Original 2008 MK2? A fully modded unit is only slightly more than the Raysonic 128. . .
I am curious to know which less expensive units(cd players or DACs) can better the DAC3. Could you please name a few? And if they better the DAC3, in what particular area(s)?
Thanks