Hthf,
I meant no disrespect, and I think Blindjim dicovered what I am talking about. What you are describing is DAC>ADC>DAC which will give you accumulated distortions. Imagine starting with faxed image, make a photocopy, then fax it and compare it to the original (not the original fax, but the original image). In this case, no matter how good your cd player is, the processor is does two conversions. If you use a digital in, you skip the first two conversions and end up with QUALITY 5 or maybe 6 if the ADC is culprit. Put yet another way: if your scale was 1-10, 9=90%. 90%of 50% = 45%- OK, so my math was off before. Bottom line is that the more you put in the chain, the worse it will get. You might be surprised at how good the digital in is on your processor in conjunction with your room correction. Nowadays I run as much digital to my stand alone dac as I can decode.