I am currently using a AV receiver (7 channels) for 2 channel playback in my living room because I have a nice PC soundcard plugged into it with a coax cable.

Does anybody know of a good stereo receiver with digital inputs?

The Outlaw RR2150 (http://www.outlawaudio.com/products/rr2150.html) has a USB input, which will allow you to pass a digital signal to the receiver.

Shanling makes one that includes a high quality DAC...
http://www.charismaaudio.com/A40.html

Here are two more (Mambo/Maven) also made by Shanling but designed for Music Hall...
http://www.musichallaudio.com/mmf_products.asp?show=false

I've heard the Shanling branded unit and it sounds great.

I second the mavern as a possible option.

I think Bryston makes one as an option as well in one of their integrateds.