I've got a Duet hooked up using optical to my 5 year old Denon AVR. I'm wondering if I should use the internal Squeezebox DAC by connecting via the digital coax or the L/R RCA connections.
To use the DAC in the Squeezebox you'd have to use the L/R RCA connections, the Coax is just another flavor of digital just like the optical (for digital many believe coax to be superior to optical - in my system I can't hear a difference).
Depending on how your receiver works, it is worth hooking up both analog and digital - with my old Yamaha on some material it sounded good using the Receiver DAC's on others the DAC in the CD or Squeezebox sounded better.
At the least it gives you a good comparison of the qualities off different DACs and an idea of why people often end up going to outboard DACs.
It's pretty bizarre, but the Squeezebox setup sounds decent in 5.1 - not so great in stereo. I'm running an older Denon 3802 AVR in that room.
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