EvilJohn - not correct.
The Denon AVR3803 and 2803 use exactly the same DTS/Dolby processor, but they use entirely different DACs, inferior Analogue Devices' in the 2803, and Burr Brown PCM 1791s (IIRC) in the 3803, which are of considerable greater quality.
The Denon 3803 also has a far more effective 'direct' feature, whereby it switches off all internal digital processing and video circuitry (including the front display) to maximise stereo performance. The Denon 2803 just has a 'direct' feature, which doesn't really do anything.