would I be better off...


Adding external dac (under $400) to my yamaha a-s500, or sell the yammy and get a nad or peachtree with built in dac? I'm thinking that for about a grand, I can get a better sound integrated + dac than I have. Soo, I'm leaning towards selling the yamaha in hopes of upgrading SQ & getting a dac. Complete this sentence. "Based on the current yamaha as500 and no dac with a budget of $1000, I'd ..."
128x128labguy
When I did have a CD changer, I'd connect it to the Digital LInk III via optical cable. I had a nice affordable glass toslink cable that I used for this. But considering everything I did on the computer side; DBPowerAmp for ripping, JRiver for playback, JPlay plugin, decent USB/coax cables, and the USB converter, the SQ from the changer was so bad by comparison, I very rarely used it. Eventually it went to the garage sale. Now when I get a new CD, I cannot listen to it until I rip it, which sometimes is a drag, but it's a sacrifice I've chosen to make.
One more thing - you asked above if 320kbps was CD quality, it is not. No mp3 is ever CD quality, although Apple has engineered a process for their 256 aac files that sounds very good. The differences between lossy and lossless music tracks can be subtle, but they are definitely there, I've heard them.
Lossless formats (1411 kbps):
.m4a (apple lossess, compressed file but uncompressed on playback)
.wav (cannot tag with track names, artist info, etc)
.flac (has variable compression rates, but is still uncompressed on playback)
.aif (mostly Apple only)
.wma (windows media, typically encodes with DRM for copy protection)

Lossy formats (320 kbps max):
.mp3
.aac, .m4a (iTunes, any bit rate on a .m4a file above 320 is apple lossless, not AAC)
.ogg (popular for streaming radio on the internet)
Labguy,
I'm not hugely knowledable in this arena but you asked if MP3 320kps is cd quality and its not. Cd quality is 1411 kbps.

On a side note, spotify premium is 320 kbps, the free version of spotify is 160 kbps, and Tidal music streamer is 1411 kbps.

For me, there is quite a difference between 320 kbps and 1411 kbps. Much of the micro details, vocal nuances, and background / underlying vocals and harmonics are very subdued if not lost completely on 320 kbps. Once you've heard this, it's hard to go back, at least when critically listening.
There is a Micro Mega MyDAC for sale here, asking price is $250. I think it would be worth trying out. I have not heard one, however I mention this option because this DAC has gotten great reviews by audio press and owners as being very in the under $500 price class. If it did not work out as you liked it could be sold without much loss.