I would only use the digital out on a CD player if you have a better external DA to use. A high end (newer) CD player should do a better job then a mid-fi receiver. But for awhile I was using an old Sony CD player (surprised it had a digital out) as just a transport into my B&K processor since it was much newer. DA's keep getting better and cheaper every year. Now I have a great CD player, SACD player, and preamp so I only use the analog outputs.