Originally Posted by B-BOXHUNTER
I guess I wasn't clear on the SACD part. I DID use the multi-channel interconnects for that. It's the audio on Blu-ray, DVD and CD through the digital coaxial. My Arcam does not sound tinny at all with the DV-137 which a universal dvd/sacd/cd player. I'm using all the same cables, the only thing new is the OPPO. I'm going to experiment with my son's PS3, then switch out the Arcam with my old Yamaha to see if there are any differences.
B-BOXHUNTER, you need to be more precise and explicit with regards to your equipment and how it's setup when posting and seeking advice. Just about everybody who answered, and there were a few, understood your post in the same way. I looked in your manual and noticed that the AVP-700 cannot retrieve LPCM audio from the HDMI connections. If you were aware of that important fact, you should have mentioned it as well.
As I said on my first reply to your question, when playing Blu-ray material, the new lossless codecs such as Dolby TrueHD or DTS-HD MA CANNOT BE TRANSMITTED (bitstreamed) through the digital coaxial connection because of the S/PDIF interface's bandwidth limitation, only through HDMI connections, but your AVP-700 doesn't support this feature. Therefore, for BDs with Dolby TrueHD soundtracks, only the legacy Dolby Digital bitstream will be sent through the digital coaxial output. Likewise, with DTS-HD MA soundtracks, only the regular DTS core will be transmitted through the digital coaxial output.
DVD-Audio and SACD material also CANNOT be transmitted through the digital coaxial outputs. Some DVD-Audio discs may transmit a down-converted 2-channel 16-bit/48 kHz PCM signal.
Again, as I recommended in my first reply, for the best audio quality for BD, DVD-A and SACD material, you should be using the Oppo's 7.1 MC analog outputs into your Arcam's 7.1 MC analog pre-amp inputs. I should hope that you were using the DV-137 the same way for DVD-Audio with your AVP-700. The Oppo 83 will fully decode all these lossless formats and codecs and convert them into much higher quality analog signals than the very lossy legacy codecs that the digital coaxial output will send out.
When using the Oppo 83 or you Arcam DV-137 with the coaxial digital output, you're using them as digital transports, sending the digital bits (bitstream) to your AVP-700. For CDs, DVDs (DD & DTS), this is fine as the S/PDIF interface was designed to handle the bandwidth requirements of those formats. In theory (in a perfect world), there should be no difference between digital transports, i.e. between the DV-137 and the BDP-83 since all they're doing is retrieving the bits from the discs and sending them out to the AVP. However, in the real world, factors like the quality of the laser servo, the quality of the S/PDIF transceiver (whether coaxial or optical), quality of the digital cable as well as phenomenons like noise and jitter all come into play and can account for differences between transports.
Now, if you want to continue using the coaxial digital output for CDs and the legacy codecs like DD and DTS on DVDs in order to use the very good DACs in your AVP-700, that's perfectly reasonable as they may sound better than the Oppo's DAC implementation. However in your current situation, because of the technological limitations of your AVP, for any other material you're really shortchanging yourself if you're not using the 7.1 multi-channel analog outputs from the 83 to your AVP.