What I'm doing is taking the digital out of the Pioneer Elite DVD player into a digital input of the Proceed AVP (Audio-Video Processor). That's one signal path, and the AVP should act as a DAC and a preamp. The other signal path is from the PE DVD player's RCA outputs to analog inputs of the Proceed AVP. The Proceed shouldn't do anything but act like a preamp for this second signal path.
The Pioneer DVD player was $2,000 retail, so it was Pioneer's top of the line player at the time. The Proceed was $5,500 retail. (These aren't the prices I paid.) However, the AVP has a lot to do -- all the different DD, DTS, DAC, preamp, switching, etc.
I'll see if I can discern a difference again between the two. Perhaps my hearing isn't up to par? That could save me some money!