ARC CD-2, dac or player upgrade?


I've had an ARC CD-2 for years and although it is a very nice player, I was wondering whether an inexpensive newer dac or even a newer player altogether would be an improvement. Is there anything out there for <<$1000 new or used that would beat the ARC player? I would even consider a mod at this point. Thanks for your input.
jc4659
Tubemiser, I recently substituted an upgraded meridian 508.24 and was struck by a naturalness in the upper mids and highs that I perceive to be lacking in the ARC. Also, the meridian seemed to dig deeper in the lows. However, the meridian also seemed to have a much warmer sound, almost a glow in the mids that I perceived to interfere with the transparency I was accustomed to with the ARC. I realize I am splitting hairs here, but I guess what I am after is a more balanced sound, natural timber, extended on the extremes, and no compromises in transparency and clarity. Does this help? Maybe you are correct in that what I am after can't be had at this point in time for under a grand. I am still amazed at how wonderfully natural analogue sounds in comparison (aside from the pops, clicks and noise floor).
I had ARC CD2 for 5 years.Bought right after review in Stereophile.Get a new DAC.CD2 is an amazing transport that will give you a reference quality for years to come.For 3 years i was using it strictly as a transport with multiple DACs and every time i was amazed by it.Best digital cable match-Kimber AGDL ($150 i think)
I agree with above...the cd2 makes a great transport...

keep in mind when running a dac a extra shelf, power cord, damping, and digital cable is needed (this adds quite a bit to the price depending on where your system is at.....digital seperates are very sensitive in this regard imo.

in regards to dac's the electrocompinent is very good and is about $1k used (awesome dac if you run all balanced)..if you can jump up to $2500 then the audio aero prima dac 2 or the reimyo are world class dacs (i have owned the electro and now own the aa prima 2)...
you might consider an arc cd1, but without input from you as to what constitutes an improvement, any suggestions are purely conjectures.