I use a Dacmagic in-between my pc to my amp, and it sounds good. I have also used it to come from my Cd player digitally, then to my amp, but its nowhere near as crisp and detailed as my Cd players internal DAC, so you've just got to think of it within reason...
Its a £200 DAC, then think how much your Cd player's (DAC) is worth!!!
Id be suprised if using a dacmagic with a CA Cd player would make much difference, but you never know...
Overall im pleased with it as a machine, i would reccommend it if you wanted an external DAC....