Is this a "sound" decision?

Just looking for a "sounds like a good idea to me" or a "you're nuts".

My source is an ipod gen7 160g and an O2 amp with furutech LOD.  I just sold my LCD2 rev.1 so I am replacing it.  At first I wasn;t thrilled with the LCD2s until I put the O2 on high gain.. Boy what a difference.  Anyway, that's immaterial now that I've sold them except to say that I do like that sound.

I am thinking either the LCD rev2 or the Beyerdynamic T1 as replacements because I can get those in Canada for a decent price or for about the same money I am thinking the Hifiman HE400 and get a Cypher Labs Algorythm Solo R.

I listen to a wide variety with an emphasis on classical though more chamber style sound rather than orchestral.

Also, I listen a lot while working and having something like the LCD2 while working (I'm a knife/sheath maker) makes me a little nervous having it around dust and stuff so I tended not to use them as often as I would like.

That's kind of the main reason to chose the latter set up, and plan for another set of reference phones down the road.

Basically, is the $500 for the Cypher Labs Dac better spent on the headphones and go for the LCD2r2 or T1?

Thanks!

That's the long term plan but at the moment, the cash flow dictates and either/or scenario.  I guess I'm wondering if the Cypher Dac/ HE400 is an unwise way to spend the $900 over some used LCD2r2 or T1's knowing also that the latter would be running off an ipod and O2 amp only.

Ideally would be something like the flagships mentioned plus something like the Beyer Dt1350 but that's not an option at the moment.

Just to be clear, the shop stuff I wear headphones for is the finer detail hand work or repetitive work like hand sanding a blade, not with machines running.

Thanks.  That's what I was interested to hear.  I like the idea of the Cypher Labs because it bypasses the Ipod Dac and the idea of double DAC'ing with another rig doesn't interest me.

But... perhaps the mantra of put the money in the phones not the accessories is true here too.  The rest of the chain isn't going to change any time soon as portability is part of my desires. (moving around the shop or going from the leather room to the steel/wood room)

I guess when I had a big system about 8 years ago ( http://forum.audiogon.com/cgi-bin/fr.pl?vdone&1136790341 )  I liked to work on parts at a time and sort of nail down the source (within reason) and change the speakers as funds permitted.  The idea behind the DAC is that it removes the ipod DAC from the chain.  Having never heard a Cypher DAC, I'm not sure that the ipod DAC is that bad but I feel like I have a decent enough amp in the O2 that Dac'ing the HE400s (which are and easy resale in a few months) might be better than trying to work back from the headphones.

Headphones, being voiced differently, are going to be judged unfairly by a lower system... take for instance my initial disappointment with the LCD2r1's until I flicked the little gain switch.  It was a whole new headphone after that.

Anyway, I think I'm talking myself into both scenarios at the moment...  those LCD2r2's are starting to interest me more and more...