Hi mraggett ,
I have just purchased the TAG DAC20. I use it with a Technics CD Player via optical connection to an AVR-3802 to four B&W DM6xx speakers. the DAC20 is amazing! as i understand it i have the DAC20 connected in pretty much the worst way (i.e. crapy cd player via optical link) but it is still leagues ahead of the cd player and internal DACs in the 3802. TAG say that using a optical cable bypasses some of the DAC20's functions!
To connect your DAC20 to your DVD you will need to set the DVD to output a PCM or BIT signal (im sorry, i dont use a DVD yet so im not sure what one) and connect it to the DAC20 via a digital coaxial cable.
Then either connect the DAC20 to the 3802 using one interconnect into the CD inputs, or for better 4 stereo surround, connect the DAC20 to the 3802 using 2 interconnects into the EXT.IN inputs.
see her for a little more info..
Connecting external DAC to AVR-3802
...you should download the DAC20 user manual from the TAG webpage.