Ok, first of all I want to thank everyone for all the great information I have recieved from Audiogon! This is my first time giving advice so here goes.
Using a Dac with your system should be pretty painless. First make shure the DAC you buy has a digital out. All you have to do is run a cable from the digital out on your DVD to the digital in on your DAC. Then run cables from the analog out on the DAC to the CD input on your reciever. This gives you your upgraded CD signal.
Now for your home theater siginal. Now, from the digital out on the DAC, run a cable to the digital in on your reciever. This will give you the 5.1 signal. The original signal will (or should) pass through your DAC unchanged. Just select CD or DVD on your reciver to get the correct siginal.
As far as DACs in your price range, maybe others can help more than I can. I use Theta, but there are many others out there.
I hope I have helped, if you have any questions call me at 1-631-209-0814.
Using a Dac with your system should be pretty painless. First make shure the DAC you buy has a digital out. All you have to do is run a cable from the digital out on your DVD to the digital in on your DAC. Then run cables from the analog out on the DAC to the CD input on your reciever. This gives you your upgraded CD signal.
Now for your home theater siginal. Now, from the digital out on the DAC, run a cable to the digital in on your reciever. This will give you the 5.1 signal. The original signal will (or should) pass through your DAC unchanged. Just select CD or DVD on your reciver to get the correct siginal.
As far as DACs in your price range, maybe others can help more than I can. I use Theta, but there are many others out there.
I hope I have helped, if you have any questions call me at 1-631-209-0814.