Thanks for the replies everyone.
A couple of you mentioned the Chord Hugo 2. However, I have a few reasons to go for the Chord 2Qute instead. 1) The 2Qute is basically a Hugo 1 minus the other features. They share the same DAC. 2) I do not need the extra features of the Hugo, battery and headphone. 2) The Hugo 2 will cost me about $1000 more here in the States. I don't think the sound quality difference for pure DAC duty will be that much better with the Hugo 2. I could be wrong but I read some people on the message boards saying they think the orginial Hugo 1 acutally sounds smoother than the 2. So it could go either way to which I like more anyways. 4) The Hugo 2 has a strange way of using the coaxial input having you use some adapter that fits into a smaller hole on the unit.
I think if I go beyond the 2Qute then I should start looking into a dedicated CD Transport. It's also part of the whole equation. I am not sure my Marantz SA-8005 is up to task. Yes, I am still mainly a CD person. I like to have hard copies of my music rather than computer files. If anyone knows of a good storage drive server that will last me for years and is easy to use I'd be happy to know. I go through laptops about every three years so the thought of finding and tranfering files all of the time on them is unappealing to me. I always know where my CD's are.