I also agree that the quality of the transport has a significant influence on sound quality. I recently acquired a dedicated transport from Classe after having used a very good Classe cdp as a transport for my P-3A, and the improvement in sound was easily noticed.
On upsampling, I believe that Audio Research Corp. has excellent R&D, and they did a lot of research before finally deciding that upsampling/oversampling is not a panacea, and it does not represent an instant improvement. Their reference cd player, CD-3 ($4995) does not upsample. I listened to it in a friend's system, and I believe it sounds outstanding, but I've never compared it directly to my own in my system. Then again, no way would I pay that much for my cd playback system.