Can a dvd player effect the sound produced on a home theater. I use a jvc hooked up via optical cable. I am sending everything out as a bitstream. In my current setup I feel though that I am missing some detail compared to other systems I have heard. i recently bought a 7125 and am extremely happy with the performance. I just still feel like im missing something. If some of you have seen my other posts you know I have not upgraded the preamp yet. I decided to wait. I have thought about upgrading to an upconverting dvd player since they are so cheap.

Is my problem with not enough detail in movies a dvd issue or a preamp issue or both.

If you are using a digital output for DVD's, the player should not have any measurable effect on the audio quality - it should simply be passing the digital bitstream to the receiver or processor, which then does the "heavy lifting" of actually decoding the Dolby Digital or DTS bitstream, processing the raw digital data (bass management, time delays, and any additional matrix surround processing that may be desired), and converting the signal to analog so the amp and speakers can do their jobs. Upgrading to an upconverting DVD player will improve the video (assuming you have an HDTV, and that your HDTV has a DVI or HDMI input), but it's not something that will help the audio side over what you already have. Replacing your Yamaha receiver is probably the next step if your system still feels a bit "thin" sounding.

For years I used a JVC 723, which was a good machine when it was introduced. I did not realize how bad it sounded until I upgraded to a Pioneer Elite. There is a substantial difference in the way units encode the data. The best way of comparing is by listening through the 5.1 direct input, and then switching to the optical. The difference is substantial on the JVC.

A DVD player's 5.1 direct output uses the player's onboard DAC's and surround decoder - it's not something I'd recommend in general (exceptions do exist, but they're going to be rare) specifically because receivers generally offer more robust decoding (options like Pro Logic IIx, Dolby Digital EX, and DTS-ES), better bass management, and in many cases better DAC's.

The optical or coaxial digital output of a DVD player should not pass through any decoding within the DVD player - the output should be set to "bitstream" in the player's menu so that the data is passed directly from disc to digital audio output. Now, if the player's output is set to "PCM" instead of "bitstream" then the player has to decode the audio to create a stereo PCM signal. Since that discards all surround data (Dolby Digital 5.1 becomes PCM stereo, and DTS 5.1 typically doesn't output at all because many players lack DTS decoders), you should always select "bitstream" rather than "PCM" if you have a surround receiver or processor in place.

I have my dvd player set to bitstream. Music is great, but on some other systems I have noticed some greater detail. Im talking about a boxed system my father owns. My system kicks the crap out of it for music, but lacks detail in movies. Mine does have a larger sound stage and is much punchier though. I quess in spending this kind of money on sound I want it all. I do realize Im still running the yamaha and probably wont get what Im looking for until I upgrade. I was just hoping for a short term cheap solution to get me buy until I buy a outlaw prepro.

Depending on what player you were considering, you could find youself in a scenario where using the 5.1 output could be beneficial sonically - a Denon 2910 or better could have better DAC's than your Yamaha, although it will come at the expense of any 6.1/7.1 processing (rear surround speakers will go unused). Of course, at that point you're spending more than you were probably thinking of for the player (the 2910 lists for $740, which is more than a Model 970 and two-thirds the cost of a Model 990). Your best bet is to upgrade the processor.

I keep coming back to the processor. Im trying to wait out the new formats, but I might have to bite the bullet.

I can relate to the desire to wait out the new formats, but you need to be ready for a pretty good wait. The processors are going to take longer to pick up support for the new formats - they are generally made by smaller firms, so the product development cycles are slower. You'll start to see it in receivers first (it's appeared first on the more expensive models and will trickle down product lines over the next couple years). There are a couple surround processors out already with HDMI v1.1 support if you can stomach $4000+ for a processor, but it'll take at least a year (probably 18 months or more) for the $1000-$2000 processor market to really pick up the new formats. Some manufacturers are probably waiting to include HDMI 1.3, which is still in development by HDMI.

When I originally set up my system, with my Outlaw gear and Klipsch speakers, I also felt there was something really missing from the sound on movies and music when playing from my DVD player. It was a really inexpensive player that I had put down there initially while getting things set up. I swapped it out with a more expensive (but not high-end) dvd player, and the sound was night and day. I was also using optical out in both cases, and never attempted to prove why this was. Just assumed the cheap player sounded like crap.