No, it does not, and I could kick myself two years ago, for not noticing this!
I have been pm'ing with an AVS member about using the coax digital or toslink out of my Pioneer DV-563A player, and he thinks I should get MC. But neither do I, nor the people at SACD.net think this will achieve dsd two channel, or MC channel output. Perhaps a newer player like an Oppo, or Denon. But would the 1120 convert the dsd to pcm? Right now, I am mad at myself for not getting it RIGHT two years ago, and for putting so much effort into a dead format. What inspired me was the industry's newest half hearted attempt with using these two formats and putting them oh high fidelity pure audio on blu-ray. Some of these sound fantastic! But they are charging too much, poor distribution, and using poor sources with little or no recording information will surely kill this little niche market as well. I'm going to make a sandwich, have a cup of tea, and dig up my old Technics receiver that HAS the analog mc inputs. I guess I will just have to get a switcher for ALL my speaker runs to do this. Adding to all the stereo crap in my small living room. Sign me, one very unhappy music man right now, and thanks for the posting.