My recollection is that the 200 series transports are pretty good, with a lively and rhythmical presentation (many say - better than the 500 transport, which is dynamically dead). But unfortunately Meridian DACs are not good - I have owned the 200 series one and a 566-20, and I most certainly do not recommend them. So, in your position I would trial a DAC that was upgradable to DVD-Audio, and which preferably could upsample too, and keep the Meridian transport. The amount you save by doing this will probably compensate for the fact that the Meridian DAC will be almost worthless on its own. This leaves you the option of buying a "new standard" transport later.
CD Player
I am looking to replace my Meridian 207 transport + D/A. My system consists of Sunfire Cinema Grand processor and power amp, Merlin VSM speakers (with BAM), Cardas Neutral cables and a basic Monster surge protector. Looking to spend about $1,500 - $2,000 on a good quality used unit. What would you recommend?