JohnDuncan:The DACMagic is great......but (I would argue) primarily for lossless streaming. If you have a CD player with a good quality DAC (which the Arcam has), I would not expect to hear much, if any, difference.
To me, the benefits of DACs are to unleash the potential of hard-drive stored music (which I think has technical benefits over a spinning disc), and not to make CD players sound better (unless it's a really cheap one).
GMMV (gerrardasnails' mileage may vary....)
No, I agree mostly. A dvd player or in my case a Bluray player with the DacMagic and you've got yourself a £300-500 cd player. As JD says, your Arcam has a decent DAC. The only problem and it's most cd players like it under £1k, it doesn't have a digital in. Therefore, you can't listen to the DAC without the CD.