Getting more from my DAC


I need some advice. I've put together a mid-fi office system over the last few months:

Sony XE500 CDP acting as a transport
MSB Link DAC III with 24/96 upsampling
McCormack Micro Integrated Drive amp with upgraded PS
Tannoy System 600 nearfield monitors

Toslink cable between transport and DAC. Ratshack gold series interconnect between DAC and amp. Audioquest Type 6+ wire between amp and speakers.

I was fairly happy with this system until I tried connecting the Sony CDP directly to aux posts on the amp and switching back and forth between the CDP/DAC combination and the stand-alone CDP. On a straight A/B comparison, using the selector switch on the front of the amp, I hear almost no difference, even with well recorded piano music/female vocal/jazz.

This is disappointing. The amp is low powered but pretty transparent, I believe - as are the speakers, which were designed as pro monitors and have a reputation for being revealing. So why aren't I hearing a more perceptible improvement - change, even - in the sound when the DAC is introduced into the system?

Are my crappy cables strangling the DAC? Is the transport too cheapo to let the DAC do its work? Do I need to follow the MSB/Modwright upgrade path before the DAC will really shine in my system? Or is the whole system a bit too bargain-basement to benefit from a decent DAC?

Words of wisdom gratefully received.
spartane5c
The Link is good but sorely needs an upgraded power supply, which makes a tremendous improvement. Either MSB's own P1000 or Monolithic Sounds's HC2. I have an MSB link and was unsatisfied until I got the HC2, which transformed the dac in every area-- transparency etc. and especially the bass. You should be able to pick one up for well under $200. I would do this first, even before upgrading any cables. An upgraded power supply is a universally recommended upgrade for the MSB. IMHO, it is a necessity, not an upgrade.
I agree with Dne - the cabling between the PS and DAC must be upgraded.

As far as modding the XE500, the issue is: no one knows whether it will turn out good as a transport or not. Perhaps with a $450 Superclock2 upgrade. You might be better off to buy a cheap Sony DVP-S7700 and get it modded. This player has extremely low jitter, even without a Superclock2. It makes a superb transport (modded) and there are lots of used ones for sale.
I would also highly recommend a digital coax. I have had great luck with the Audioquest VDM-3 .. completely different than optical in my tests. Optical is actually derived or converted from coax during the preout stage.

JC