Chris,
You definitely want to use the superior DAC in your Moon amp for digital processing, and not the one in your TV. If you have a TOSLINK - digital Out connection on your TV (highly likely), This will give you a great Stereo digital feed into your DAC. The TOSLINK protocol supports audio resolutions up to 24/96.
This turned out to be the best connection for me - from my Sony HDR TV into an extra Bel Canto DAC that I had around. Incredible high resolution audio.
good luck.