Digital vs Analog output on CD players


Folks, I'm sure this has been discussed before but I can not find the thread. I'm in the throws of experimenting with connecting my two CD players (yes I use two for the fun of the hobby and switch around; some CD's sound better on the NAD and others on the Rotel) via their digital ouputs to the digital inputs on my A-V receiver vs their analog jacks. What's the official scoop on this? Does using the digital outputs improve the overall soundstage, depth, detail, etc of the music being played? Are there any other benefits going digital vs analog? My hi-fi store sold me a digital interconnect and is letting me try it out. I can always go back to analog. I have the my NAD C541 connected via its digital output and my Rotel RCD-1072 via its analog outputs. So far, I am finding the differences to be subtle. What does everyone think on this? Many thanks. Sorry if I sound naive on this topic.
pdn
Good post and it hits home to me. I have had cd separates for years, the Cal Audio Alpha and Delta. The dealer who sold me the units recommended a certain cable and I stuck with it for a few years. He then sold me a balanced interconnect when I chose to upgrade. I'm ashamed to ay that by accident I found out that I had been sold analog interconnects for that critical connection between transport and dac. I ordered a digital cable from Signal cable and did notice a difference right away. I fumed for a few days when I thought about not having the optimum connections for years.
Zar,

I know exactly how you feel. Hey I've had things connected wrong, speakers not balanced via dB's, inferior cables, speakers not located optimally in the room, wrong settings on my A-V receiver, etc for many months. You think you're doing it right until you either read it or someone straightens you out. That's all part of the learning curve in this hobby. In your case, it was your own Hi-Fi sales person that seems to have misled you. I see how that can really disappoint you. I've learned a lot just following this forum. This is a fantastic way to come to speed as they say. Keep asking and posting.
I have a Sony RCD-W2000ES CD Recorder connected to my Lexicon RV 8 via digital coaxial out and analog R/L out. Should I use the d/a converters in the sony or Lexicon, the Lexicon has sophisticated antijitter technology so as not to concern myself with mismatch. Thank you for your time.
All good points. However, my advice would be to sell the Rotel and the NAD and buy one device that is of higher quality and sounds better than either. This could be another stand alone player if you wish, or some sort of device to stream audio files from your computer (many choices here). Option #2 is likely to give you better sound quality.

Shakey
I agree that it does come down to personal preference. It takes work to test these things. 
Same levels (measured) ,same interconnects, same associated equipment, same ambient noise,same exact location, same feet, same warmup period,same mindset..
Then when you feel confident you have not changed anything else you can make a fair comparison. I am currently listening to a lexicon rt-10 through rca analog and hopefully my rotel rsp-960 preamp is not converting it because I would rather believe the $2500 player is responsible for the beauty.