Well, I just got done swenson modifying my february 2004 toshiba sd-3960 with cryoed magnet wire and vitamin q caps. the result is pretty amazing. considering that the total cost is under 100 dollars I am about ready to crap my pants. If you are into DIY stuff, things can be had incredibly cheap. A year ago I spent 800 bucks on a musical fidelity a324 DAC and a sugden headmaster with some very spendy interconnects. It sounded very good.
Now my system consists of the toshiba, homemade cryoed magnet wire interconnects, stock hd 650 cable into pantyhose modded 650s. then I have a stock 300 dollar bottlehead SEX amp kit (soon to be modified slightly with magnequest power supplies and C4S active load system).
anyways, the new system, costs in total about 800 dollars compared to my old system which cost 2600 dollars. THE NEW SYSTEM SOUNDS 3 times as good! through the same exact headphones! it is totally unfatiguing, extremely detailed AND musical, etc. etc. etc. I am now at the stage of making the inevitable minor refinements and tweaks to acheive the ideal sound for my taste. the point is, If you are willing to take charge of your own audio pleasure then you can acheive so much for yourself.
my recommendation for best source under 800 dollars is one that costs 100 dollars. make sure to get an older 3960 (not zoran) or any 3950 and read plenty of forums on them. the modifications are very well established by now, and they definitely work. soldering and stuff is alot easier and less time consuming than you think. you just have to try.
Clark