I don't have an 886 (yet) but I do have BDP-83SE and I believe it's DACS are better than what's in the 886. If I do get one (which I'm still debating) I plan on connecting via multichannel analog and let the Oppo do the processing. From everything I've read that would seem to get the best results.
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HT:
Pioneer VSX-1120
Salk Songbirds, SongCenter, SongSurrounds
Panasonic BDP-45
Outlaw LFM-2

2 Channel:
Red Dragon M-500 monoblocks
BAT-VK3i
Salk HT-1TL's
Apple TV
Beresford 7520 DAC
Surgex XS10