This is a reply from Marantz Support. I thought I would pass along:
Hello Santsuru,
Thank you for contacting Marantz Support, we value you as a customer and appreciate the opportunity to be of assistance!
If you use a digital cable, the signal will have to be processed a second time by thee av8805 DAC. Given the quality of the DAC in the av8805 there is not likely to be a discernable difference in most cases. However in general, you would want a signal to only be processed by one DAC, so the better option would be to use an analog connection between the units, and have the av8805 in direct mode.
Marantz does not have an official position on cables, but i can off you my own opinion and make of it what you will. Poorly made cables can and will degrade the quality of audio.Well made cables will prevent a loss of signal, but cannot improve it. As a result, once you get a cable that is "good enough" anything beyond that point will not make a difference. Price can be suggestive of build quality, but isnt always. There are some cheap cables that will work well, and there are many brands that spend more money on marketing their expensive cables then actually making them. I personally prefer to look for moderately priced cables from respected brands as those frequently fall into the "good enough" group.
If you have any further questions please feel free to contact us again.
Thank you for contacting Sound United Customer Support. Have a great day!