I'm currently using a Pioneer DVD player into an Electronic Visionary Sytems Millennium DAC. I had previously been using a modified Link DAC, and the EVS DAC is clearly at another level in terms of dynamics, imaging, soundstage, and transparency. At $1050 it's also significantly more expensive, but you definately get what you pay for(superior parts, execution, and jitter reduction) and you can always return it if it doesn't dramatically improve your system. With the Millennim DAC you'll get fantastic results with your DVD player as a transport, so you can pretty much ditch the Philips and not look back. Best of luck.
Tim
Tim