I find this question very interesting but need some additional details before taking a stab at an answer to your question.

Is this "big box store receiver" you're replacing a multi-channel audio/video receiver? Will the replacement also be an A/V receiver or at least perform the same functions?

How concerned are you about the fidelity of audio playback? Do you seriously listen to CDs and/or audio files? Do you have any interest in high-resolution audio formats (DVD-A, SACD, DTS-HD or Dolby True-HD).

Quote:
I'd appreciate it if someone could please explain what a DAC is. I understand its a digital to analogue converter, but why would ytou get one if a regular receiver has a built in DAC? In addition, are DACs limited to audio use (music/cd) alone or will they work with video (i.e DVD). How do they or can they be integrated into a system which streams media such as the apple tv or xbox 360?
I ask because I'm thinking of stepping up from a big box store receiver and I've seen alot of discussions about DACs and preamps which I don't understand.

Thanks

p.s I did search the forums for DAC and all I came up with were questions about recommendations.

DAC's are all about the idea and general audiophile understanding that separate audio devices that are dedicated to specific tasks are better at their singular tasks..than any devices that are 'combinational' in nature.

Ie,..oh..a 'gun-pen'. A device that is either a gun, or a pen. Both devices are compromised in effectiveness in perfection of use and implementation vs one separate dedicated device for each type of device.

This is not always true that a given DAC is better than a DAC combined with a CD transport mechanism is, with regards to sound quality..and that is known as a 'CD player' A device that is separate and plays on the CD but does not output an audio signal is called a 'CD Transport'.

In the case of the very vast majority of audio receivers, the sonic quality that can emerge from an internal DAC is compromised, for many sound technical reasons.

Thus, even a lower priced DAC to convert a digital audio signal to an analog signal is very likely to sound superior with respects to 'perceived' audio quality vs the one built into the receiver.

This is a way to incrementally upgrade the audio quality one gets out of audio devices. Buying the quality looked for: one item type at a time.

The trick is to learn how to do this intelligently, and gain what you desire, which is - better sound.

Like anything..it requires a bit of investigation and learnin' on the part of the seeker.

You will have to figure out what your current needs are, what the future needs may be, and then you can begin to take a stab at figuring out what is the best course.

It is possible to hook up a DAC to a streamed system as you use right now, but the complexity will increase over that of a simple stereo audio set-up. The cost of such an implementation will increase and at the same time the audio quality may decrease. The one box solution you have right now simplifies hookup and use..but it also compromises sonic quality.

All depends on what you are looking for. As a long time explorer of the gaming and video world, generally, I'd say that the route I have gone is the better way, just my opinion.

I have dedicated system for pure stereo use, and a general one for video and gaming.

In my case, it's a ~$10K (and highly modified) stereo tube preamp..with all of the surround gear hooked up in a 'tape' or aux input, so it interferes as little as possible with the sonic quality of what is 'best' on my pure stereo set-up.

Pardon the unasked for analysis, but in the world of video and gaming the overall sonic qualities may not be noticed, as the visual and 'ass grabbing' aspect of excitement added, brings about a situation where any drive toward perfect audio reproduction is nearly a waste of time, unless you've got the spare cash to throw at it.

A separate DAC may give you a bit of an increase in perceived audio quality in your set up, but it (your audio gear-system) would have to be optimized for stereo reproduction at the same time, in order to realized any hoped for gains in your impression of audio quality.

If your goal is a system dedicated to audio, a standalone DAC may be a good solution. As KBK described, a standalone DAC will very likely deliver much better than fidelity than what is served up from a receiver. Since you're heavily into networked audio, I suggest having a look at the networked DACS from Olive or Slim Devices (especially their Transporter). Both the Olive devices and the Transporter will play back 2-channel 24-bit/96kHz audio files.

Why is it that FLAC or other lossless formats don't suit you? Storage is cheap. While a networked DAC can deliver the best possible playback of lossy compressed audio files, there will always be missing information.

If you would like to leave the option for multi-channel hi-rez music (e.g. DTS-HD or Dolby TrueHD) open, I'd suggest waiting for a little while. Marantz just announced imminent availablility of a networked processor that includes 8 24-bit/192kHz DACs, but the announcement does not define the maximum resolution supported over the network.

KBK dismissed the goal of combining "perfect audio reproduction" with video. For myself, the combination of great video with outstanding audio playback would be damned near the perfect "ass grabbing".

I dismissed it due to the $$,$$$ that is generally involved. To really do it justice, it's $$$,$$$.$$, on average. Most of that is in speakers and amplification. then cables. then AC power. Then acoustics. It gets ugly-expensive, and fast. The room itself has to be designed differently than that of a 'stereo' room.

We can do that, no problemo. If asked to, I think, with no emotion or ego involved, that my partner and I could create the best AV system ever seen or heard. Why?

I do custom video hardware level electronics and optical work. With strict attention paid to every single detail.

I make and design video screen products at the highest level of optical design considerations, with every single possible aspect of the entire process well thought out, using cutting edge custom techniques and proprietary knowledge, with full access to a lab that produces the best coatings designs on the planet.

Taras, my biz partner, (for Teo Audio) does the highest level of acoustics and noise control, in the entire industry, period. He'd never claim it, but if threatened with death if I was lying or even remotely kidding myself, I'd look right down the barrel of the gun and say the same thing again.

I do custom wire designs, with respects to the actual wire..as evidenced by the 'wire thread' that became a bit contentious for while. I'd custom make the even the damned wire.

I do the same sorts of things with electronics. The only thing that comes out of a catalog, would be the electronics, and that would be highly modified in ways I simply don't talk about. In the same way I make the best damn video projector on the planet, and anyone who's seen one wholly and enthusiastically agrees. Same for the audio gear. Does that mean I'd take apart someone's 'perfect', cost no object $20k 1000w monoblock amps? And re-build them? To make something that sounds better? The answer is YES. Does that mean I'll take apart someone's cutting edge $150k 3 chip 2k+ DLP projector, and make it better? ABSOLUTELY. No question about either. The sonic and visual differences would be obvious.

We also do loudspeaker design that we've been working on for the past 14 years, that is just as ground breaking and paradigm exploding/changing as the 'wire' (which isn't even wire - it's a whole different animal). No further comments.

Every single aspect of the entire set-up would be 100% custom and at the absolute cutting edge, all of it never before witnessed or known. That new, that different.

All someone has to do,is ask, and be willing to pay for it. As it won't be cheap. In all seriousness, every aspect of it, down to every damn iota, all paradigm and mold breaking.

Now, does that get your attention?