I'm confuse Do i need a dac for my cd player ?

Pecolar - you do not NEED a separate dac. The Arcam CD73 is a standalone CD player.

As Swampwalker said, if the unit has a digital out you can connect a DAC in the signal chain to decide if there is an improvement over the stock Arcam unit.

When you run a cd player using RCA the signal passes thru an internal DAC, like others say if you want to use an outboard DAC you are free to do so using an optical or coax digital cable (then you cd unit becomes simpy a transport)

A outboard digital analog converter (DAC) replaces the built-in DAC of your CD player. It's a way for you to get a different sound from your digital source. DAC's come in different price ranges and quality. I love the sound of tube electronics so I've added a tube DAC to my Sony DVD/SACD 9000ES player and have noticed a "warmer" and more detailed sound. Experiment with higher priced DAC's than your unit to see what the fuss is all about including tube DACs. Use a coax cable to connect the DAC and Arcam instead of a fiber optic interconnect if your Arcam can accommodate it. If you like the sound of your current CD player, don't sweat it.

Ok- So, if you are using a DAC in your system, does the quality of the CD player/transport make any difference? It seems the DAC is re-voiceing the music anyway.

Yes, the new dac will "revoice" you digital sound, BUT, the player/transport also has a distinct role to play in the final sound. I have heard quite distinct differences between player/transports feeding the same dac. Some do better than others, no hard and fast rules.