For the record, Sugarbies answer is probably your best solution! I've used that many times, it's the best solution for 2 channel and HT, with no compromises that way, yes.
Jeffreybehr, in response to your questions, it's not just a matter of whether or not the DAC's in these DVD players that process DD/DTS are as good as the one's in the "pre/pro's, but rather a combination of factors! Believe me, I've tried it many many many times the way you're doing it, and IT DOESN'T WORK FOR dd/dTS even remotely as well sonically!!!! If it did, I'd SURELY dump the pre/pro and just go dirrect multi-channel connection from the DVD player to my amp or multi-channel analog preamp!!!
Really, yes, I think most of the processors in the players fall far short of what's being used in the separates pre/pro's. But also, the analog output and buffering stage of the DVD player isn't up to snuff, and doesn't give enough gain to really offer the DYNAMICS needed/intended from the DD/DTS!
I already know how your system sounds for DD/DTS movie material this way...it's shy on dynamics, impact, and 3 dimmensionality, even ultimate detail. The big difference however, is DYNAMICS!...or in your case, lack-there-of.
That's just how it is. If you think not, just pick up a used Acurus ACT 3, and switch it out for your existing setup for movies....not even close!!!!