At just over a grand the Anthem avm2;Under a grand the Sony tae9000es with the latest software ain't bad. There are others.
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I believe Parasound made a processor to mate specifically with your model using that DB 25 pin connection. I think the model is P/DD-1500. In fact, there is someone (not me nor do I know them) selling both units on eBay. You may want to look it up just to see. FWIW: I have an older Pioneer DVD/LD player that does pass PCM through the digital output to my DAC, which is a Parasound DAC1000 (mid-90's 20 bit). I was not aware that all DAC's wouldn't process a signal from a DVD. Maybe it has to do with having a PCM digital out from the player(?). You may want to try and see if there is a digital out on the back of your DVD player that says "PCM" instead of "Dolby Digital" or "DTS". If you see this, use that output to go to your DAC. That should allow you to use your DAC for listening to movies in stereo. Good luck - Tony
There are only two digital outs on the DVD player; toslink and RCA/coax. There is no dedicated dolby digital output (there IS a dedicated AC3 digital output on my pioneer laserdisc player but that is another conversation). I am aware of the Parasound PDD 1500; it does not support 96khz. I believe it is the 96khz sampling rate that I am looking for when I want to be able to decode the DVD digital output. That is only a guess, though.
The PDD 1500 unit is also less desirable than similar units such as the Sony ES dolby digital processor. The Parasound has no output control; the Sony, and others, do have a volume control. This allows the unit to be used as a stand alone preamp which I have done in slimmed down systems during moves.