DAC to match $2-3K CD player

Thanks, Smholl (and Audiowoman). I've begun ripping my cds, and your description of the W4S dac makes me think that maybe I'm closer to going that route than I thought ...

But the W4S DAC-1 is $995, right? Who's talking about a $5K dac?

I don't know anything about the Monarchy Audio NM24, Clio09, will have to check it out.

Is the modded PS Audio DL3 a different beast, Jimhsu? In what way? I ask because a friend bought the stock model to replace a Cambridge Audio Dacmagic and ended up going back to the Dacmagic; he thought it was too smooth and not as dynamic as the Dacmagic. (My sense of the Dacmagic is that, while it would improve the Squeezebox, it can't compare with the CD5x.)

The W4S DAC-1 sounds very interesting. It gets at the idea behind my question: that a $1000-1500 DAC might give a $2-3K cd player a run for its money--and offer more flexibility to boot. I'm curious, Smholl, is the presentation similar to the CD5x?

Thanks, Tvad, forgot about that one. The only dacs I've heard (enough to have an opinion about them) are the Musical Fidelity V-DAC and Cambridge Audio Dacmagic; no surprise that I wouldn't trade my cd player for either one. Hence my original question about dacs that compete with $2-3K players--and the suggestions about the W4S DAC-1, among others.

Thanks, Kbarkamian, your suggestions are really helpful. In my very limited experience, I think you're absolutely right about budget DACs. I'm very happy with the CD5x now, but W4S (sooner) and Naim (later) sound like strong contenders. Interesting that no one mentioned the Benchmark DAC-1.

Thanks again, Kbarkamian. That strikes me as very good advice, especially as I'm very happy with the CD5x (it is my main source; normally, I use the Squeezebox for Pandora or internet radio only). I'm in no hurry to change it.