Hi guys,

I've been browsing the forum for a while, but this is my first time
posting. I was hoping you could help me understand DAC's and a few
scenarios in my situation:

Here is my current setup:

Denon AVR - 1612
Squeezebox Duet

My understanding is that the AVR has a DAC, but so does the Squeezebox.
The third option would be purchasing an external DAC (with the equipment
I have, is this necessary)?

Before we get into external DAC's, I have some questions about my
current setup:

In order to use the Squeezebox DAC, does the setting on the receiver
have to be in Direct mode? Does it matter if I use Optical Out or RCA
cables?
->My understanding is that optical out is sending a digital signal and
my receiver is then decoding it (regardless of direct mode, stereo, or
dolby)

If I decide to use my receiver's DAC, does it need to be in optical? If
I were to use the analog, RCA cables would the signal go from Digital ->
Analog -> Digital. If so, how bad is this?

Any help understanding this would be greatly appreciated!

Thanks


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