It's important what kind of sound you like. CD players do sound different. If you like rock or big bass music, you want a totally different kind of CD/dac than if you like classical or easy listening (e.g. Bel Canto) type stuff. Also, the advantage of the transport-DAC approach is: 1) if you like spending the time to develop your system, 2) if
one of those breaks down (most likely the transport) but you really do your like DAC, then just replace the transport, and 3) with a separate trans/DAC, you can address the JITTER problem, as some of these replies already stated; you can get an AA DTI Pro, a Monarchy Audio or a Sonic F. jitter device, and these (so people say) ALWAYS seem to make the end result sound better than a budget CD player. But I would not recommend the Perpetual Technology P1a with most Dacs -- be careful there.
John