SACD can only be output via analog (hence the need for the 7.1 Direct connection) because of format restrictions. I recommend that you still use the optical output for CD's and DVD's, which you're already doing. The 990's 7.1 Direct input does not allow any surround processing, but assuming you have speakers set to small the 990 will apply all of its bass management, channel delay, and channel trim settings to the 7.1 Direct input. As a result, it is best to leave all similar settings in the player "disabled" (so speakers large, sub on, delays for 0 feet, trim at 0dB) so that these adjustments only occur once.