I read a British review of the entry level s370. They state the audio is very good...but the review was mainly looking at video performance
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sort of depends what DAC your receiver has. another option is to go with a ps3 and run it bit direct to your receiver. some of the pioneers run the wolfson dac and thats pretty good. could always go with a new cheaper dac like a v-dav or dac magic if you think it will be better. i suspect you willbe able to beat the dac in a entry level player pretty easily now days.