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Message: <blockquote data-quote="Drifter" data-source="post: 1058622" data-attributes="member: 13448">So what you did do was to actually use the Oppo's internal dolby decoding to process the signal and to send it to the AVR using the pre-inputs. This would obviously have limited you to 7.1 as that is all the Oppo was capable of decoding. First lets discuss your use case. You mention as option 3 a standalone DAC. This option is obviously only relevant if you will be using your system for stereo only. If you want to watch movies using some sort of surround sound, you will need a device that can decode the digital signal and a standard DAC is not that device. Remember the Oppo uses different outputs (and processing ) for stereo and surround sound. For movies that therefore leaves you with option 1 and 2. How much better the internal decoding of the Oppo was compared to a top-end AVR/Processor is debatable. All I can say is that Atmos is a clear step up in surround sound and it is well worth it. If it was my money I would opt for option 2.</blockquote>