Sounds right. Transport - Pre Amp (Processor) - Amp - Speakers. Thats what I use. If you go digital out between your transport and pre you can use the dac's in your pre-amp for stereo.
CD/DVD Transports to Surround Processor
I'm actively looking at the Meridian 800 & 861 (DVD & Processor, respectively), and was wondering, more generally, if all I need is a DVD Transport into a Surround Procesor. That is, let the Transport pick-up the signal, then forward this onto the Pre-Pro's Processor.