If you want to use your DAC and 2-channel system for TV/Internet movies, then you are stuck with 2-channel. You can set the optical output from the TV to PCM 2-channel in the setup menu. In this case, I would highly recommend reclocking the optical cable from the TV with a Synchro-Mesh reclocker and then a good silver 1.5m BNC coax to your DAC. This will reduce jitter and improve clarity significantly. You can also drive the same Synchro-Mesh with your Oppo for CD playback and switch between TV and CD player to get the benefit of the low jitter for both. The Oppo must also be set to 2-channel for Blu-ray movies if you want to use your DAC for blu-rays.
If you want Dolby Digital from the TV then I highly recommend using the iFi SPDIF iPurifier from Amazon to reduce jitter of the Dolby Digital signal. Like the 2-channel SM above, the iPurifier accepts Toslink in and out or coax in and out. Run a Toslink optical cable from the TV to the iPurifier and then a 1.5m BNC coax with RCA adapters to your SS processor/amplifier. You cannot use your Auralic DAC for this.
If you use your Oppo for Dolby Digital Processing, you must have the 5 speaker or 7 speaker/amplifer system to support it. If you only have 2-channel, then stick with the DAC and reclock with the Synchro-Mesh.
I highly recommend this Toslink cable:
https://btpa.com/TOSLINK-XXX.htmlAlways buy BNC terminated high-end cables for coax and use RCA adapters. Always get at least 1.5m length.
Steve N.
Empirical Audio