I can not be sure but I would guess that the best option for sound
quality would be to use the RCA SPDIF digital out from the Squeezebox in
to one of the RCA digital inputs  on the Denon AV Amp. This will mean
that the Denon will do all of the digital conversion and then send that
direct to the outputs on the Amp. While it is sometimes said that the on
board dac in the squeeze is good my own experience is that it is not the
best (given the price this is no great surprise) however the digital out
with Flac files is excellent and feed this in to even a half decent Dac
(which Denon will be) and you will get the best sound quality. If you
then wish to set the output for direct / pure two channel or one of the
AV settings such as Dolby II Music etc is entirely up to you. Try and
give it a listen whichere you enjoy and prefer then use that.


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