Only thing is, won't I have to change the output options on the DVD player for the outputs to use??
Nope!
If you connect the DVD's digital lead to the amp's DVD input, and then connect the DVD's audio out L&R analogue phonos to the amp's CD input L&R phonos, you'll be fine.
The DVD will send output to both the digital and analogue outputs. When playing a DD/DTS DVD, simply select the DVD input on the amp, which will already be setup for multichannel (and this input will have been assigned as digital). For DD, you'll get a downmixed stereo output on the analogue phonos, while for DTS DVDs (AFAIK) you'll get nothing or possibly noise.
For a CD, just select CD on the amp (having assigned the CD input as analogue).
You shouldn't have to adjust the settings on the DVD player at all - leave the audio output as "bitstream" or whatever your DVD player calls it.
Whether the sound is good enough is another matter though.
Only you can decide that.
Personally I think the magazines overhype the shortcomings of most current DVD players a bit, compared to budget CD players. Sure, you probably won't get a £300 DVD player to sound quite as good as a £300 CD player, but that doesn't automatically mean the DVD player is crap (in many ways it's a similar issue to multichannel amps vs stereo amps).
The first generation of DVD players may well have been a bit crap (the first Philips I had 4 years back wasn't very good - very bright), but they were new, and CD playback probably wasn't high on the list of design priorities then. I think things have come on a little bit now - a DVD may not be the equal of an equivantly priced CD player (and really there's no reason to expect it to), but that doesn't mean it's unlistenable). Of course, it depends on the particular model in question as well, just as it always does!
PS - many dedicated CD players also have functions that DVD players might lack - irrelevant for some, but for others not having them might be a bit of a bind.