DSD-Direct-to-Analog conversion *IS* available if you prefer to use that, but using that bypasses any audio processing in the player. So you would need to do things like speaker distance adjustment or Crossover processing external to the player. Be aware that most hardware does such processing in LPCM, so the Analog audio from the OPPO would have to be re-digitized to enable that -- in which case you may very well just want to use the normal DSD to PCM path in the OPPO anyway.
HDMI to the AVR will carry either LPCM or Bitstream audio as you choose. If LPCM, then of course there's no conversion to LPCM in the AVR. If Bitstream, then the AVR has to decode to LPCM -- a necessary step before you can hear Bitstream audio on your speakers. If your AVR accepts HDMI DSD, then the OPPO can output that as well when playing DSD content. Please note that most AVRs simply convert HDMI DSD to LPCM anyway as the first step upon input, because, like every other device, they need digital audio in LPCM before it can be "processed".
By the way, the Manuals for the 103, the 105 and the new 103D (with Darbee) are all available for download from the OPPO Digital web site, and will answer a lot of questions like this.
In addition, if you would look at the top of the first post in the 103 or 105's Owner's Thread you will find links to the FAQ which is also a resource you should use for basic questions.
You should know the odds are good the AVS Mods will merge the posts in this new thread of yours into the 103 Owner's Thread real soon now. AVS asks that player specific questions go in the main player thread instead of everyone creating new threads for each question.
ETA: And just like that, the mods moved these posts while I was posting that! :
Edited by Bob Pariseau - 11/29/13 at 5:26am