NAD has a new D.A.C. Called the M51. It has HDMI inputs and should be able to decode you Dolby signal to stereo but if you want it to decode it in 5.1 or the like then you need a Processor.
To make it simple, to take a digital signal and make it analog you need a Digital to Analog converter.
Both your typical D.A.C. and surround sound processor are both Digital to Analog Converters, the main difference is that a surround sound processor with output analog in 5.1 channels or more and your typical D.A.C. Is just two channels, stereo. You should be able to go into a good surround sound processor and thru the menus speaker selection just turn on the main two channel and that will give you stereo, sort of anyway.
To make it simple, to take a digital signal and make it analog you need a Digital to Analog converter.
Both your typical D.A.C. and surround sound processor are both Digital to Analog Converters, the main difference is that a surround sound processor with output analog in 5.1 channels or more and your typical D.A.C. Is just two channels, stereo. You should be able to go into a good surround sound processor and thru the menus speaker selection just turn on the main two channel and that will give you stereo, sort of anyway.