New CDP or DAC for budget system?

What would you guys suggest would be the best way to upgrade the CD performance of my system? I am currently using a Sony DVP-NC655P DVD player to play CD's. I have maybe $100 or so. Would I do better with a CDP such as the Denon DCM-370 or with an external DAC? My other equipment is:

Speakers: JBL S-38
Reciever: Sony DA4ES
Low-end Tara labs speaker cable & interconnects

Thanks!

Mark