I would really appreciate some clarification regarding the DVD/CD player's DAC and that of the 1050. Are you automatically bypassing the DAC of the source and thus utilizing the receiver's DAC when you connect to the 1050 via optical inputs?? Or is there some sort of setting that would need to be done in order to choose one over the other? Is it by connecting the source to the 1050 with an analog connection how you utilze the source's DAC? Please help me feel like less of a moron
Thanks!

Don't take this as gospel, there are plenty 'round these parts that know more than I, but I believe what you are saying is correct. Using a digital out utilizes the receiver's DAC while the analog out is via the player's DAC.

You have it pretty well figured out already, AJZepp. Using an optical (or coaxial) digital connection means that you are using the 1050's DAC and not the player's DAC. Using the player's analog outputs means that are using the player's DAC.

Here's one more little twist to it, though. If you make an analog connection to any of the 1050's stereo inputs (CD, tape, aux, etc.), the 1050 will convert the analog signal *back* to digital, process it (bass management, surround processing if it's selected), and then use it's DAC to convert it *back* to analog. If you want to avoid the analog-to-digital-to-analog stuff, you can connect the stereo analog output of your player to the left and right inputs of the six-channel input on the 1050; it is intended for use with DVD-Audio and SACD players, and bypasses all processing.

The A-D-A processing of stereo analog inputs is true of pretty much all modern receivers -- the only exceptions would be stereo-only receivers (such as the integrated amps that some companies like Classe make) and some high-end receivers (like the flagship receivers from Denon) and pre/pros (like Outlaw's 950) that include a "stereo bypass" mode. For most sources, it's not all that big a deal. For someone using a CD player with a very good DAC or someone using an external DAC, however, the A-D-A processing can be a problem.

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gonk -- Saloon Links | Pre/Pro Comparison Chart | 950 Review

Thanks for the help guys.....it's nice to have a better understanding of this now. I guess the next logical question is whether it's best to use the receiver's DAC or to pick up a better quality player and connect it the way Gonk describes above. Any thoughts?
Thanks again

That's an easy one! Try both and see which you like the sound of better. Hopefully wherever you're considering buying a "better quality" player will let you try it out at home to see how it works. Just be certain of the return policy when you buy.

Remember, for a lot of this stuff there is no "right" way to do it. It's all a matter of personal taste.

Here is something else to think about? If you bypass the Outlaw's DAC you will not be able to utilize the bass management. Most DVD-A players have no bass management or a very mediocre bass reassignment. The Denon 3800 has a pretty good bass management; but varyily expensive compared to entry level players.

I would venture to guess that the Outlaw DAC is as good as most DACs in the budget and mid brand CD/DVD players. As you go higher up the scale, however, the players incorporate better DACs. I've heard some higher-end CD players that would blow the Outlaws DAC away. These players cost $1000+. If I had that kind of money to begin with, I'd have probably never looked at Outlaw for a receiver.

That being said, I use an old Sony portable, but I mean the very first "portable" Sony produced with a separate power module and a battery pack that attached in its own case, with a Creek amp connected by Outlaw cables. This system sounds better than my Outlaw with a panny DVD player via optical. I've swapped the speakers around between the systems and the better sound comes from the Creek/Sony. Now it could be the Creek amp is better (probably is, it cost more for a modest 2 channel amp.) I haven't tried the sony connected to the direct in on the Outlaw.

And one other thing. If you do go the separate CD player route, get the Outlaw cables to connect it. The clarity you get with these cables is incredible. They are a true bargain. Stay away from the Monster stuff.