Yes, the DAC analog out (R&L) then goes to a line input on your preamp. SACD cannot be played through a digital out, and SACD DACs are not on the market (yes, there may be a few exceptions). Most DACs are intended for 2 channel music, and not intended to decode DTS or Dolby (as opposed to Digital surround processors). However, surround processors will decode DD and DTS as well as act as DACs for 2 (or more) channel PCM signals, but generally do not do as good of a job on the latter as dedicated DACs. Hope this helps.
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