My head hurts....

Stand alone DACs are becoming the standard for digital music replay including computer and internet radio.
I'd keep your universal player and get a DAC. You can try other transports, computer, etc.

I was thinking of getting a better source or modding my Oppo and after research felt that a DAC was the most flexable option. I can upgrade to BluRay later and still have great music reproduction. I don't have to look for the best source in my price range. The DAC gives me almost state of the art no matter which way I go.

Musicfile,
I must state once again to really consider an outboard dac with a computer or cheap DVD player as your transport. This is the future.
You can get state of the art digital playback for cheaper than a high end cd player. More and more companys are offering them...Benchmark, PS Audio, Bryston, Cambridge Audio, Maonarchy, Consonace, Musical Fidelity, Bel Canto to name a few. This doesn't even include the high end companies DACs.
I use a DAC w/ a tube power amp for a sound with few compromises, whether it is music or movies. It would cost a lot more to have this level of performance if I had to by a seperate CD player, DVD player, preamp, power amp, and cabling.