What to spend is always the toughest question. For most of us, we are willing to and want to have better sound by upgrading but don't want to spend any more than we have to for an improvement that will make us go WOW.

Will a $1000 CD/SACD player make an improvement in your sound? If it does will you feel there was enough improvement?

Unfortunately the only way to find out is to borrow a player or purchase one and try it.

The thought process for me is what am I trying to change in the sound of my system?

If my source is clearly the weak link in the system then that is the place to start. How a new source or any equipment will sound is the synergy of complete system. Each time you upgrade a piece should show improvement in your sound but probably not as much as it will when you improve the next weakest link in the chain.

Yea, it's a never ending circle. You have to decide what you are happy with, but that is part of what makes this hobby fun and annoying at the same time.

As to gooomz's questions. A well designed $3000 player will probably sound better than a well designed $500 player assuming that the other pieces in your system can reveal what the $3000 player has to add. The same is true with speaker cables or any equipment you have. The more you improve each piece of equipment the more chance you have of hearing improvements with each upgrade.

There does come a point of diminishing returns and only you can decide that. Does some one spend an extra few hundred or few thousand dollars for a few % improvement?

Only you, your ears, wallet and of course our significant other can determine that.