I'm sure you meant that the CAL was a DAC and not a transport--anyway, as long as you've placed the DAC in between your DVD player and your receiver, then you're good to go.
I'm not sure what you mean by "less digital sound," but I will agree that it should be less harsh. The CAL is one sweet DAC.
Not all DACs output 24/96. Most bring the signal down to 48; perhaps someone knows the specifics on your model. But you should be able to play DVD-A's whatever the standard these guys finally decide on.