Many different DVD players always tout such things as 12-bit DAC chip, etc... But if the player is a HDMI upconverting player - does it use the DAC chip at all? Isn't DAC = Digital-to-Analog - so therefore a pure digital HDMI connection doesn't even use the DAC at all? Can anyone explain this clearly? Thanks...

You figured it out. :) DACs are only used when producing analog output - video or audio. HDMI does not carry analog video or audio.

larry