The 970 would act as a DAC, The quality is pretty good, though I'm sure there are better on the market. for a temporary measure, I would think this would suffice. After you get used to it, it may be more like permenent. If this doesn't meet your expectations, you might audition a 990 , that's what I use and I've nevar fund the need dor an external DAC.
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HT:
990/770
Oppo BD83SE
Pioneer Elite DV-47A
Magnavox HDMR513h DVR/DVD-R
Sony DVD megachangers-2
Sony CD megachangers-2
Monster power centers-2
Sony 48" rear projection SDTV
Roku video player
JVC AL-A158 Turntable
Polk RT-2000s,CS-650,XS-650s,RT80s
LFM-1EX
Hsu VTF-1
12" Velodyne

Family room:
OPPO 970
Sony 32" direct view HDTV
Denon 3801
Rolk RMs