@bassdude - You are very close to what you want to setup. You need to use the Hegel in Home Theater (HT) mode. According to the manual you can configure it this way. That way you are only using the Hegel's power amp side.
1. Connect all your digital sources to the external Yggdrasil DAC
2. Connect the external Yggdrasil DAC's output to the ARC preamp. You will have to select/change between the digital inputs using the Yggdrasil DAC's selector.
3. Connect any non-digital sources to the analog L/R connections on the ARC preamp.
4. At this point, your ARC preamp is handling ALL source inputs.
5. Connect the L/R outputs of the ARC preamp to the analog inputs on the Hegel (use either XLR's #1 or Analog #1)
6. Configure the Hegel for Home Theater (HT) mode. I believe all you have to do it select the input connection the ARC preamp is connected to and turn the volume knob to full output (i.e. max). BUT CHECK WITH HEGEL THAT THIS IS ALL YOU NEED TO DO FOR HOME THEATER MODE.
7. Use the ARC preamp to adjust the volume, etc. And that should do it. You are now using only the amp section of the Hegel.
- Jeff

