Incorrect. DAC is digital to analog converter. Since you can't convert to analog twice, there's only one DAC in use at any one time. If you are using the analog out on the Port, the DAC is in the Port. If using a digital out on the Port, the DAC is in the receiver. Either way, you aren't going to hear much difference, the quality (or lack thereof) of one DAC over another is mostly audiophile nonsense. Making a DAC that is transparent to the source costs very little If the DAC is otherwise coloring the sound it means the manufacturer has purposefully altered the transparency to the source, which anyone could do via a basic digital equalizer.
