Thanks for for your thoughtful reply. You pretty much hit the nail on the head on all counts. Thank you for saving me the time with the pioneer. The 5400, I believe will be the best transport I have to work with. It is the best built, with the most audiophile aspirations of the units at my diposal.
Upon further listening, going back and forth between the monster and silver serpent on the output of the DIP, I noticed something more interesting. While the sound of the monster is sweeter, the sound is noticeably less dynamic, and transients aren't nearly as well deliniated.
I have ordered some items for my dac that I feel should improve it considerably, as they have responded EXTREMELY well to my other ARC gear. A synergistic research black UEF 12 gauge power cable to replace the stock power cable and the matching UEF black fuse.
Im a big fan of synergistic cables and tweaks.
As far as the digital cable, I also got a sweet deal on a brand new DH labs D-750 1.5m with a BNC connection on one end so I can utilize the BNC input on the DAC 8. Deal too good to pass up... maybe I will try the Belden too, due to it being so inexpensive.
I'm hoping for the best of both worlds with the dh labs. Its said to be a nice warm sounding cable. I can't believe I'm actually saying that digital cables sound different. But they do. It's pretty obvious. My system has gotten to the level that I can hear the differences easily. The toslink out on the Sony is nowhere is warm and lush sounding as the coax. It's cold and lifeless.
Even the platform of which the DIP 24/96 sits on makes a difference in transparency. When directly on a space on my glass shelf on my rack , ( yes I'm hoping to get a better rack soon) the sound is noticeably worse than when I put it even on a 1/2 inch wood cutting board directly on the carpet. When I put it on the wooden board, a whole new level of clarity and soundstage size comes through. It's not subtle. I will also be getting a thick maple platform for the dac to reside on, while on the shelf. I may even consider upgrading the power cable on the DIP as well!