Integrated AVR DAC vs. Oppo BDP-93 DAC

These questions may seem redundant and simple to some/most of you but I'll ask anyway. I just purchased a Denon AVR-S650H to pair with my Oppo BDP-93 for HDCD playback. I don't currently have surround sound speakers (those will come later) so I will be listening primarily though headphones. I've connected via RCA from Oppo to the Denon FL/FR so I assume it's using the Oppo DAC. First question is, is that the way to go, or should I connect via optical/coax and let the Denon DAC do the conversion? I understand the Denon is not "top" of the line but listening to the setup I have I just feel I should be getting more (i.e. the clarity is not what I expected) and the CD's I'm playing do have peak extend (Europe 72 Box). I have the speaker set up to Mix Down since I'm connected analog, which plays back in stereo (apparently only way since I'm only using FL/FR). I also have Headphone mode set on the Denon. When playing back I have to increase the volume to nearly half to get a decent sound, volume wise. Any suggestions to what I should do? This is by no means a multi-thousand dollar setup but my 30 year Sony AVR-970 seems to sound better than my new Denon, which to me means I'm doing something wrong (more than likely!). Thanks for any input.

 

If you have an optical cable around, give it a shot and see which way you like better.

 

I highly doubt the Denon can do that. Or any AVR ever??? HDCD was kinda cool but now just a pain in the butt. Are you sure Europe '72 righton:*) etc have Peak Extend? How do you know? (Not challenging, just asking, and hoping NOT). As for the Denon DAC, optic cables are quite cheap, so easy to try. I'd keep both connections, maybe reserve the analog for the HDCDs.

*I was going to Europe a long time ago, and called their office to ask about tour dates. A rather confused woman told me they hadn't been to Europe since way whenever. Hey, I didn't know! Loved that band, saw them like 8 times, might try the John Mayer edition. First concert I ever saw! What a trip, literally!