New amp or new cd player?

Definitely do your front end first.

Although I have also read that a decent cdp used as a transport, and a dac such as the bel canto dac 2, sound nearly as good as some of the very good cd players out there.

You might also want to look into PC Audio if that holds any allure to you (having your entire music collection at your fingertips. If done right that method can also sound better than "very good CD players". Yes, you certainly could get a nice DAC and use your current transport, or a better one. A great DAC will make a significant difference to my ears. I don't know how discriminating you are. My wife couldn't care less about this stuff and claims to hear little difference. It's in the ears of the beholder, as it were. It would not be difficult to improve upon an older Onkyo DVD player IMO. To clarify what may be confusing you: Your CD/DVD player already contains a DAC inside. If you used it as a transport you would be bypassing the use of that internal DAC by sending the digital output signal to an external DAC (assuming it has a digital output) via a cable. By all means, it can make a big difference. I'd probably go for a better transport too, especially if yours is old. If you don't have much experience in these realms, I'd suggest you go to a dealer, or to an audio show where you can hear a few examples and see if the differences made in an investment in your front end actually matter to you (or that you can hear them at all). If you have a friend, or a local audiophile club, or anyone who might be patient enough to demonstrate to you what potential may be there for you that would be a big step in the right direction and may save you money, and or open up new worlds.

I tried out a friend's Oppo 980 and was not impressed with the digital output through my DAC. It was OK but was handily spanked by my Modwright 999es. There may have been something amiss as I later tried an Oppo 983, which I still have. Same digital cable, same DAC, same system - outstanding performance from that transport / interface. Alas, I no longer have the Modwright to compare it to. I was also disappointed with the DVD video performance of the 980, but to be fair did not tweak it much. The 983 video is outstanding - the very best I've seen just short of Blu-Ray. I can understand the video performance being better, but really don't get why the transport performance is so markedly different. From the standpoint of the 983 I'd strongly endorse the Oppo option. Once their BluRay player comes out you'll surely see many on the used market.

Also on the used market, at just above $1K a Modwright platinum signature truth Sony will be kicking butt and taking names.

IC's do certainly make a difference and Monster would be easy to improve upon, however, my opinion differs in that I'd still get rid of the player first as the investment there has potential to yield more given a $1K+ budget. There are also inexpensive IC options that may better your Monster. Signal, Blue Jeans, Anti-cable, are just a few that come to mind. On the used market for a song. Again, I'd suggest auditioning some options to make sure you can hear and care about the difference. There is definitely a diminishing point of return on investment and that will vary with every individual.