A couple of suggestions.
1) Lose the processor for two channel music. I've never heard one that competes against a dedicated tube preamp or SS preamp. A decent tubed preamp will take you to levels of enjoyment no processor can achieve.
2)You are correct.. You need either modifications to the output stage of the Denon or you need a Dac. I would go with the Dac myself before the mods.The music from the Digital box I suspect is compressed. It will sound better with a Dac in the chain.Probably not as good as a good old fashion cd player run through a Dac though.
If you have $5000 to spend .You could easily do both tubed preamp and Dac with money to spare if you shop smart.You could then use the rest of the money at your discretion on room treatments and cables. Just swapping the preamp out will make a HUGE difference from the start.The Dac will also have a large impact..if you get a decent one..notice I didn't say expensive.;-)
Have fun
1) Lose the processor for two channel music. I've never heard one that competes against a dedicated tube preamp or SS preamp. A decent tubed preamp will take you to levels of enjoyment no processor can achieve.
2)You are correct.. You need either modifications to the output stage of the Denon or you need a Dac. I would go with the Dac myself before the mods.The music from the Digital box I suspect is compressed. It will sound better with a Dac in the chain.Probably not as good as a good old fashion cd player run through a Dac though.
If you have $5000 to spend .You could easily do both tubed preamp and Dac with money to spare if you shop smart.You could then use the rest of the money at your discretion on room treatments and cables. Just swapping the preamp out will make a HUGE difference from the start.The Dac will also have a large impact..if you get a decent one..notice I didn't say expensive.;-)
Have fun