That is vast arena. Does your transport allow you to plug in and choose a hard drive? If so, this may be a good start. Get some good audio CD ripping software that does error correction, and rip some  CDs uncompressed to a hard drive.

Many, like me, use a computer and DAC, but the computer setup, if you want great sound, is not as simple as it might appear. Different ripping software, file types, and methods (no compression, full resolution error free is best); different machines make different amounts of noise that is easily conveyed through the digital cable wires to the DAC and can screw up data by reports....many ways to start right and deal with this; different cables make a difference in all sorts of ways; vibration, EMF RFI; player software used and settings make big differences; system setup to minimize computer processing and associated noise matters; external hard drives used and ways of connecting them for best sound make differences; little filter rigs to reorganize/convert the SPDIF or USB data for better sound....on and on, it all matters.

It is pretty simple if you just copy someone's setup, but looking at all the many choices so many people have tried to get where they are is daunting. Just have to keep in mind the basic needs to get clear with your own choices. In the end my system is pretty straight forward, but it is all the right stuff together that makes the whole great.

Something I love about the computer is transparent EQ integrated with good player software for fine tuning. But only a few of the really good Mac player softwares (I use a Mini) allow extensive EQ... some none, and some minimal.

The more modern approach is to buy a ready-made unit that does all this well, but I personally have no knowledge there, having figured out the computer server.

computeraudiophile.com is a huge resource. If you look around there, you will get a feel of the arena and maybe make some choices from that.

Here is a recent server review I just found. Have not read it, so can't recommend it, but it may help illustrate the all-in-one scene. http://www.stereophile.com/category/media-server-reviews

In 30 years of using CDs in my home and car I've never had one wear out.

PS....and boombox for 2 weeks every Feb. at Bonita Beach, FL until I lost my free place to stay for vacation

This might be the type of thing you are looking for?

http://www.audioadvisor.com/prodinfo.asp?number=COX12

http://www.musicdirect.com/p-346863-bluesound-vault-2-digital-music-playerripper...

Cool. Keep us posted.

I have been using a Bluesound Vault for about 3 years.  It has a terabyte hard drive and CD ripper built in.  It supports most file formats but not DSD.  The new model now has a 2 terabyte hard drive.  It also supports many streaming services and by adding Bluesound Nodes you can play music stored on the Vault on other systems in other rooms.  The Bluesound system is controlled via an app on your phone or iPad.  The new Vault has both optical and coax for digital out. The cost is $1200.

I have ripped all my CD's to the vault in flac format.  IMO the output from the vault sounds better then the output from my Marantz CD5004 player.  I'm really happy with it with one exception.  They have recently upgraded the software and changed how you manage playlists and the play queue.  I liked the old version a lot more.  

You can read a lot of info on their forum at:
Helpdesk.bluesound.com/discussions

How do you wear out a CD? I have several from when CD just came out and over the years playing them have no issue? There is no physical contact to extract the information like vinyl or tape. If I am not mistaken a real CD has pits to reflect back but copies are burn marks. Why not use the original? I would think the parabolic type reflection back off of a true CD would yield less jitter.

I wear CDs out especially when they sometimes double as coasters.  Sh** happens.

I do pretty similar to Trip. I take these little PCs, put Windows on them, rip all my CDs, and stream them to my PS Audio DirectStream DAC either through USB (with Foobar2000 software), or right now I'm testing Roon software via the Bridge II network input. Both sound fantastic, but the Roon/Bridge II setup was so much easier! (and way more expensive).

There is definitely a learning curve for a pure digital setup. You can spend lots of money and get systems that are pretty well complete, you just add your music, or you can get your hands dirty and do it really inexpensively with a tiny computer and some software and lots of poking around to get it how you want it to look/work/sound.