You're correct in assuming that the TOSlink from your DVD player is a direct digital signal to the internal DAC in the Yamaha reciever. It's also not surprising that you don't hear much difference between the Yamaha DAC and the Cambridge CDP.
Have you tried a comparison using the analog outputs from the DVD player against the Cambridge? There's where you're more likely to hear the difference.
There simply isn't THAT much room for DAC improvement in a $400 CDP from a low volume mfr like Cambridge. By the time you subtract dealer markup, shipping, mfr. markup, advertising, the cost of the CD transport, controls, remote, etc., how much do you think Cambridge spends on their DAC section compared to Yamaha? And don't underestimate Yamaha's DAC; their experience in digital audio design is extensive and their buying power is vast.
While I'm not familiar with your Yamaha, its quite possible that its simply not capable of revealing much difference between two reasonably good DACs. Home theater A/V receivers are full of compromises; with the critical power supply and amp capacitors usually taking the back seat.
I'd say you should rearrange you're spending priorities. Forget about expensive cables until you've got electronics that warrant them. Until then, it's like putting racing tires on a Camry.
Have you tried a comparison using the analog outputs from the DVD player against the Cambridge? There's where you're more likely to hear the difference.
There simply isn't THAT much room for DAC improvement in a $400 CDP from a low volume mfr like Cambridge. By the time you subtract dealer markup, shipping, mfr. markup, advertising, the cost of the CD transport, controls, remote, etc., how much do you think Cambridge spends on their DAC section compared to Yamaha? And don't underestimate Yamaha's DAC; their experience in digital audio design is extensive and their buying power is vast.
While I'm not familiar with your Yamaha, its quite possible that its simply not capable of revealing much difference between two reasonably good DACs. Home theater A/V receivers are full of compromises; with the critical power supply and amp capacitors usually taking the back seat.
I'd say you should rearrange you're spending priorities. Forget about expensive cables until you've got electronics that warrant them. Until then, it's like putting racing tires on a Camry.