Dacs better used from DVD or Receiver?

I have the Sony DVP-NS755 dvd/cd player, admittedly a lower end player, and I'm looking to purchase the Denon 3803 Receiver, one of the reviews I read said to utilize the audio dacs in the Denon rather than than a inexpensive dvd/cd player.
That's ok with me --- how do you do it? Do I turn off the dts processing on the dvd player and let it pass through to the Denon where it get's processed? Or, exactly how is DD and DTS and Pro Logic II processed from the Denon if its not first processed from the player? I always thought if I had the Dts 'on' on the dvd player it would be doing the processing and not the receiver. If so, why own a dvd player and receiver that both have DD and DTS processing?
Bottom line, how do I get the receiver to do all the digital processing?
Thank you in advance.
Any DVD player that had a audio-digital output, usually toslink or coax, will send the signal unprocessed.

There are the various formats that you refer to and, all I can say is that you should experiment until both units can work together.

I run my DVD digitally through my Audio Aero Mark II CD player as I like the upsampling. The AA will only take a PCM signal.
The dacs in the Denon 3803 are supposed to be very good. However, I’ve noticed a big difference in sound when using the analog connections from the DVD player to the receiver (also a 3803). I’m using both digital and analog connections. I thought that the dacs in the Denon would be superior to the ones in my Toshiba DVD player but when I switch the receiver from digital to analog I get much more detail and presence. In digital mode the sound is rather thin and the soundstage is slightly smeared. I use digital mode for Dolby Digital and DTS movies only. All 2 channel listening is done in direct analog mode. It’s easy to set it up this way, just add a set of analog connections from your DVD player to the CD input on the back of you receiver. To actually switch from digital to analog just change the input on the receiver from DVD to CD. For an accurate comparison be sure that the receiver is in “direct” mode on both inputs. Don’t worry about any of the audio settings in the DVD player, the receiver will do all of the DD and DTS processing for movies.
Good luck!
Hey guys,if you use the dacs in the player: how you gonna control the volume??? Enlighten me. Then if there IS a volume control in the dvd player; there's a compromise I wouldn't want to make.