boomzilla,
dpphd is correct, I remember he and I both responded on a similar thread about a year ago. We both have systems that utilize the Oppo-105; although he uses a prepro while I go direct to multiple class D amps.
I originally used a VTL 2.5 tube preamp with ht bypass with the Oppo but, after comparing this to direct using XLR cables from Oppo l +r stereo outputs and my mono blocks, I sold the VTL since the Oppo was surprisingly very good as a 2-ch preamp but I understand that's subject to taste. I'm also using the unbalanced outputs in a 5.1 system. and the processing is solid. As erik mentioned, you do lose the room correction if that's important to you.
According to this thread on Audio Circle the 105 does not lose bits due to its digital volume control:because it's 32 bit and the volume adjustments are done in the Saber dac chips:
http://www.audiocircle.com/index.php?topic=114588.0Enjoy,
Tim