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In Reply to: affordable dd/dts processor vs stereo DACs posted by bstan on December 12, 2001 at 12:54:43:

... which the dealer repaired - some of the soldering joints had dried out. However it sounded pretty dreadful in this system so it was disposed of. Maybe the unit was still faulty although I had no complaints from the guy I sold it to (via Audiogon).
The SH500 is relatively old technology and DACs has improved dramatically in the last few years so I'd be surprised if better units are not around within your budget. Having said that I cannot advise you of any particular DAC to gun for :-(
Maybe you might do better to upgrade to a DVD player with inbuilt DD processor. I have a Philips Q50 with built in DAC coming in the next couple of days and I understand this highly praised player can be purchased there for around the $400+ mark. Unfortunately my processor is not fitted with inputs for 5 or 7 analog channels so I will not be able to tell you how good the Philips internal DAC is vs the external(I'm too lazy to want to shift all those interconnects!).
Bottom line is you are correct in targetting the DAC. IMO most criticism of bad digital sound, either 2CH or surround, can be zeroed back to the DAC.
Good hunting
John

Video Asylum

I had a faulty Technics SH500 ....