Based on my own experience both obviously matter but I would say transport 70% and the DAC 30%. There is nothing a DAC can do to compensate a poor performing transport. It all depends on a superior signal.
Which matters more, DAC or transport?
In my search to better the digital playback of my system I've been lead to look at several DACs to couple with my arcam cd36, and have also considered buying a whole new player like a McIntosh mcd 201 or maybe even a lower end esoteric. My question is: will I get better results using a good DAC (for $2000 to $3000) with my mid-fi transport or with a new player that has a better transport mechanism built in, coupled with what's probably a slightly less sophisticated onboard DAC? Also, what do people think of the Bel Canto DAC3? It's one I've considered. Thanks.