Does the Transport make a significant difference

Hi RicRed, not all DACs are well suited for direct-to-amp operations... Hence, your mileage may vary.

you can also try a subtly different strategy... Combine DAC and preamp into a single box. E.g. Jon2020 has reported astonishingly good results with his Rowland Capri S2 preamp combined with its DAC card. Total investment just below $4K list. See this short thread:
http://forum.audiogon.com/cgi-bin/fr.pl?ddgtl&1413730895&openmine&zzGuidocorona&4&5#Guidocorona

The Parasound P5 is a preamp with a DAC, but the PS Audio Perfectwave DAC 2, sounds significantly better. I don't have a problem with my DAC. I'm trying to find the best way forward. What is the better bang for the buck, new transport or preamp? Again, I want to spend 3-4K?

Never rule out cables without trying first. I tried a foundation reshearch power cable on all my equipment and the most signifcant improvement I heard was on my wadia transport. shocked me too.

11-22-14: Ricred1
The Parasound P5 is a preamp with a DAC, but the PS Audio Perfectwave DAC 2, sounds significantly better. I don't have a problem with my DAC. I'm trying to find the best way forward. What is the better bang for the buck, new transport or preamp? Again, I want to spend 3-4K?

I would keep in mind the possibility that a "better" preamp might, by virtue of presumably being more transparent, bring the sound closer to what you did not like when you tried using no preamp. For that reason among others I suspect that a new transport is likely to be the better choice. Alternatively, I would also give serious consideration to Steve's (Audioengr's) suggestion of his reclocker. Although I have no experience with it, I have heard good reports about the benefits it has provided to at least one audiophile friend whose ears, opinions, and system I particularly respect.

Interestingly, also, I note the following statement about the PW DAC II at the PS Audio site:

It hasn’t escaped us that many of our customers rely on the PerfectWave DAC as their primary music source feeding a power amplifier directly. In fact, that is our preferred method of connection.

Just speculating, but perhaps you found inserting your preamp into the signal path to be preferable because its less than perfect transparency is masking the shortcomings of the NAD CDP you are using as a transport.

Regards,
-- Al

Hard drive is better...imo. transports not as much as other components. And....in most cases, very little. To compare a transport to a tt, arm and cartridge is a far reach. Money would be better spent on other components or software.