Would someone please make a suggestion on how I should connect my C542 to my T763 receiver and why? Analog or digital? I'm asuming it depends on which had the better DACs. Im not sure which does but I'm leaning towards the C542. Thank you very much.
Analog without a doubt. MUCH better sound that way!!!!!! I have both pieces. It's about more than just the DAC's. There is a reason good preamps don't have the digital input. Enjoy that C542, I know I do!
incidentally, one major reason to use the internal DAC of the CD player is that this avoids (or at least lowers) jitter problems. Jitter escalates significantly when it has to pass through the S/PDIF interface. This isn't so serious for HT where rhythm isn't a strong requirement, but in music jitter introduces timing errors which can make the music become boring.