Mike Cartman here is a reply I posted in the CD player thread about the DAC 20s ability to pass a 48Khz (DVD) signal onwards from its digital output to an AV amp for 5.1 processing, although it can do it one guy in here has commented this (reclocked signal) sounded bass shy, compared from a direct bitstream 5.1 output, it may be the conversion from bitstream to pcm that alters the sound, PCM DACs cant cope with bitstream (5.1) 48Khz (the DVD player needs to be set to PCM output either 48 or 96 Khz) or DTS signals (these can cause damage via a PCM DAC into an amp then onto speakers) HTHs :
Dts Boy, the way Charlie suggest is the best way IMO for connecting up the V25 (I assume you have 2 outputs 1 RCA coaxial & 1 Toslink optical) the coaxial would go from the V25 to the DAC for CD duties carrying PCM signals, then the optical for bitstream duties for AV movies (for exactly the same reasons as Charlie states). But Im sure you are in fact talking of the RCA coaxial output on the DAC 20 that can pass the signal that the DAC 20 recieves (From V25 in coaxial input) through the unit (correct me if Im wrong dude) I think someone has tried it and the DAC 20s processor does doctor the signal, I think If I remember the bass was lighter from this output, but I think it is academic, because you will simply run a separate optical cable for movies and all other processing (CD & DVD music) via the analogue outputs into your 1SE from the DAC 20, I asked TAG about the output loop and this was the official reply from TAGs (Very Helpful) Helpdesk :
To answer your question: Yes, the DAC20 will pass through the digital information from a DVD player up to 48 kHz. This information is also re-clocked inside the DAC20, helping reduce any jitter. However, improvements in sound quality will depend entirely on the quality of the output from the DVD player, the cables used and the quality of your AV processor.
So the signal is doctored by the DAC 20 AFACIT. But dont let this put you off the DAC 20 in conjuntion with a very good DVD player (like the V25) will give serious CDPs above £1500 a good run for the money hell in my book even outgun them.
FWIW I only use the DAC 20 in conjunction with a stereo hifi set up, and the processing it does from my Pioneer 717 is astonishing in stereo mode (for AV 5.1 & 48Khz PCM stereo), I find the DAC 20s decoding from 5.1 downmixed into its 2 channel DAC much clearer (Better Bass & Separation) than any Dolby Digital 2.0 track @ 48Khz (I have done many A/B comparisons on the same movie), this show me that it is a superior processor in its own right. I also listen to a lot of 16/48 PCM music via the DAC 20 (For example U2s Elevation & Neil Finn Live DVDs) and I am here to tell you this is wonderful. Obviously you can still get your 5.1 from the 1SE via its optical cable, but I would suggest if listening to music then even its downmixed stereo listening to DVDs would sound better than the 5.1 processor (IMHO of course)