Source Rotel RCD 971 Player Upgrade or DAC

I am reaching out to find out the merits of spending more money on a new CD player or investing in the Bel Canto Dac 1. I have been in the process of upgrading my system for the last year and one of my earliest purchases was my source. When I purchased my source I did not anticipate the other upgrades I would make. I now believe that my source may be the weak link in the system.

I am interested in improving the sound of my system now and will deal with SACD and DVD-Audio at a later date. The things that I am trying to find out are:

1. What an upgrade from the Rotel RCD 971 to the Rotel RCD 991 or Rega Planet 2000 be significant? I have read a few places that the 971 can be somewhat dry and unmusical. At times I do get that feeling.
2. What are the relative merits of getting a higher end CD player versus getting a DAC?
3. If I got a higher end player, is it common to still have to purchase a DAC to get sound improvements.
4. Other impressions of the Rotel RCD 971.

My system contains:

Rotel RCD 971 CD Player
Rega Planar 3 coming shortly
Rotel 970 Phone preamplifier
Adcom 750 Preamplifier
Odyssey Audio Stratos Monoblocks
Magnepan 1.6qr speakers
Acoustic Zen Matrix interconnects
Acoustic Zen Satori speaker cables by wired
Harmonic Technology Pro AC 11 power cords on Odyssey Monoblocks
Kimber PowerKod on the Adcom preamp