EWS...here is what you should do..I also have the Denon, which I presently use for Dolby Digital demodulating & decoding of LDs & as a 6.1 input for DVD-A & SACD.
Take the AC-3 RF out of the LD into the Denon's AC-3 RF input. Next, take either the optical or coaxial digital output from the LD into one of the Denon's optical or coaxial inputs. Finally, connect the digital out from the Denon (either optical or coax) to the 950.
Then, grab the Denon manual soas to setup what ever optical/coaxial input you used as the designated AC-3auto input. When you play LDs, select the AC-3Auto button.
What this will do is :
1) DD/AC-3 Discs will be demodulated in the denon, and the DD signal will be passed to the 950 for DD decoding.
2)PCM(regulal stereo Digital sound) & DTS LDs
will pass the signal through the Denon to the 950. The 950 will either decode the DTS or deocde the PCM into whatever you have the input set for (DPL2, DTS NEO, stereo, etc.)

This will provide the 950's latest decoding for your LDs.

One more thing though, if you have any older LDs with no DD nor PCM (digital sound), that are analogue, you will nee one more connection....connect the analogu outs of the LD to a set of analogu ins on the 950. For these analogue discs you will then need to select that input. By the way, you will also need to a second set of video inputs for this input if you use the 950 for video switching.
Hope this helps!