In what pattern did you put Dynamat inside your transport? I have just sold my battletank Cary cdp and am soldiering/suffering using my 4 year old Toshiba dvd player as a transport in the meatime.... I currently have vibrapods under it (sitting on a 2" thick oak shelf). I put a gel mousepad on the casing on top of the transport in a (lame) attempt to start to reduce vibration.
I have not added any Dynamat to my Parasound belt drive transport. I have used it in an AIWA XC-37M changer and the improvement was more than subtle. I use a similar setup w/my DVD player, with brass cones underneath, Vibrapods supporting a board and a mousepad on top of the DVD, but that's to watch movies. Cones help a lot, as energy needs to be drained away from the component and into an appropriate sink. I use Goldmund cones on my transport (they're excellent) but they are definitely not cheap.
...my alternative is to get a belt-driven cd transport (CEC or Parasound). I have heard that these transports can sound a bit slow/sluggish/boomy when stock, although they are very smooth. Is that your experience.
Yes, that is my experience. I have a McCormack SST top loading transport and the electronics are the opposite of the CEC: very fast, tight, visceral. The CEC transport is smoother, truly musical and more detailed, though. Dan Wright is going to mod mine and he said the Superclock II was not needed--that he had modded CECs before (including their top of the line) and that he knows how to correct all those shortcomings. If you like smooth, analog like CD sound I suggest you contact Danny Boy and tell him you discussed this with me. I really think this modded transport and Dusty's DAC are going to stay with me for a long long time...