I would like to know the answer to this also. Especially on the cheap.
Monarchy Audio DIP Classic - 24/96 Digital Interface Processor (DIP)
A great, inexpensive add-on to any CD or DVD digital system employing separate transport and DAC. Works particularly well with the MSB DAC products. Smooth out nasty digital harshness! Features coax and Toslink inputs, and coax and balanced outputs. Handles 24/96 signals and passes all digital surround formats, including AC-3, DTS, and THX 5.1.
I copied this from the Music direct web site and in my system it did indeed pass DD and DTS. I'm usind a Proceed AVP.
Copied this from Stereophile review.
This Mk.II DIP 24/96 handles 24/96 signals and passes all digital surround formats, including AC-3 and DTS. And it includes a new AC input filter that Monarchy claims blocks "all" external noises from the AC line. All? If you say so, C.C.
I think if you get the DIP 24/96 Mk 2 you will be alright. As I recall, the DTS tracks from the eagles and Diana Krall sounded better than straight through my sony DVD player but I bought the theta because it was MUCH better than the sony/DIP combo