The dacs in the Denon 3803 are supposed to be very good. However, Ive noticed a big difference in sound when using the analog connections from the DVD player to the receiver (also a 3803). Im using both digital and analog connections. I thought that the dacs in the Denon would be superior to the ones in my Toshiba DVD player but when I switch the receiver from digital to analog I get much more detail and presence. In digital mode the sound is rather thin and the soundstage is slightly smeared. I use digital mode for Dolby Digital and DTS movies only. All 2 channel listening is done in direct analog mode. Its easy to set it up this way, just add a set of analog connections from your DVD player to the CD input on the back of you receiver. To actually switch from digital to analog just change the input on the receiver from DVD to CD. For an accurate comparison be sure that the receiver is in direct mode on both inputs. Dont worry about any of the audio settings in the DVD player, the receiver will do all of the DD and DTS processing for movies.
Good luck!
Good luck!