I need some help deciding whether an outboard DAC would improve the sound of my music.  First let me trace my digital path.  I rip all my CDs to my iMac using Apple Lossless.  From there, the files travel through a CAT 6 cable to an Airport Extreme located in a closet in the center of my house.  The Airport Extreme assigns an address and sends the data on to a router, also located in the closet.  From there it can travel to any number of locations in my house.  In this case, it travels via CAT 6 to an Apple TV box connected to my Arcam AVR350 with an optical cable.  First question:  Does this mean that my Arcam does all the digital to analog conversion inside the receiver?  Question 2: It sounds great to me.  Would a outboard DAC make it sound better?  Question 3:  Does all this digital routing around my house degrade the digital signal in any way?  Thanks.

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