Abe, I don't want to oversell the XA777ES (at least not till it's fully broken in). I'm going to provisionally put it on par with a Meridian 508.24 for Redbook (which can be had used for about the same $2K as a XA777ES). But I'm not sure about the Audio Aero, EMC-1 etc. I suspect that they may be better. As for the SCD-1, I don't think the Redbook is better on mine than any other player you can buy for $3K used -- and probably a touch worse. I bought the SCD-1 for SACD, and in that area it excels.
One member on AA has reported good success with the SCD-1 as a transport driving a Audio Note 3.1 DAC (and the horrendously expensive Audi Note Dac 5). This whole outboard DAC thing is really quite perplexing -- they are just too DAMM expensive for such a changing technology -- like spending $5K on a computer.
My ulitmate goal would be to have: my XA777ES and SCD-1 modified by Richard Kern AND an Audio Aero for Redbook. I would be real happy though if my XA777ES turned out to be 95% of the Audio Aero. And I've yet to see Accuphase or DCS demonstrate that their solutions are that much better sounding than a modded SCD-1.
At this point I just don't know what is best, so I'll keep an open mind. I do hope to listen to a lot of digital at the upcoming Toronto show. But Abe, don't sicount SACD, it is worth exploring and can achieve the same sort of satisfaction as top notch vinyl setup --Lorne