From my experiences with that player it is an analog volume attenuation regardless of you using the control on the unit or the remote. I do know on the Mk I there are two different remotes, both of which can control the volume- I don't see how they could make one volume digital and one analog. But when in doubt call a dealer they will be able to clear up the confusion; I haven't used a MkI in over 6 months so my memory may be a little fuzzy.
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