CDs, redbook standard, put out 44.1kHz at 16 bits. The DVD on the video standard is 24 bits 96 kHz and DVD-A will put out 24 bits 192 kHz. There are a number of devices (digital to digital--that go between the transport and DAC) that will upconvert the CDs and output a digital signal at 24 bits 96 kHz, but as you pointed out you have to have a DAC that is capable of receiving this information. Many DVD players have the option of putting out either 44.1 kHz 16 bits or 24 bits 96 kHz. It is user selectable. The latter is desired if you have a DAC capable of handling it, if not then you must use the 44.1 / 16 option. I am not aware of any older DACs that downsample the 24/96 signal.
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