While you are correct about SACD being converted to analog Sdcampbell, DVDA is also converted to analog in the same manner. This is true unless of course you have an iLink connection on the output of your player and an input on your processor that will allow digital transmission between the two. You can use the digital output for DVDA only to play back the DVD DTS layer of the disc which in no way sounds as good as the DVDA layer. If you are playing back your discs in DTS only, you are not hearing DVDA.
X-10 V3 and multiple digital sources
I would like to know if it is possible to connect two different digital sources to the X-10 V3. I currently use it between my CD player (X-Ray v3/X-DAC v3) and my integrated amp. I'm planing to buy a Universal player for SACD and DVD-A and would lile two know if it could be connected to the X-10V3 as well. The manual is confusing (to me) Thanks.