[nashaudiolover]

I have my computer connected to my AVR with an optical cable and the signal is displayed as a digital PCM. I hoped that the receiver would have converted it to analog with the internal DAC but from what I've read and understand there isn't much of a difference in the sound.

Does anyone know if that is the case or would I be better off investing in an external DAC and running the RCA outs to my AVR?

[Badger0-0]

It will have been converted to analogue because that's what the speakers are

You could try an external DAC, but as to whether it'll be any better, who knows?
Having said that quite a few people do use them.

[nashaudiolover]

Oh, okay. I think I understand now. The display is just telling me that the signal coming in is digital... In that case, I'm content using the internal DAC and spending my money elsewhere. Thanks for the information!