It will output DVD A and Blu Ray audio via the digital output and they sound great. It will only output SACD through it's analog output and I have not listened extensively to that yet. I only have about twenty SACDs and I avoid them now because of this problem.
I use a digital signal processing preamp which includes sub crossovers and the necessary four DAC channels. Currently I am using a very inexpensive MiniDSP SHD which has DACs that are substandard for my system and are a bit grainy. My old TacT processor died and I needed a cheap substitute. I have a new DEQX Pre 8 coming any day now which has a full 4 way crossover and 8 DAC channels. It is also a $13,000 unit of the highest quality and should be wonderful.