The posters above are correct, but you're not quite done yet. You also need to go into the setup menu of the DVD player and set the digital output to be stereo. You'll see that option as PCM, LPCM or something of that nature. It can't be bitstream. That way, a movie or concert DVD in surround will output a stereo digital signal that the DAC3 can process. If the DAC3 receives a bitstream surround digital signal it will mute the output since it cannot handle these types of formats.
Connecting low-end DVD player to Bel Canto Dac3
Is it possible to upgrade the sound of my DVD player by connecting the DVD's coaxial output to my Bel Canto Dac3? If so, what would be the best way to connect the units?