My budget for a DAC would probably be under $500. I've heard good things about DACMagic from Cambridge Audio. So would I go USB out from the Mac Mini and then RCA connectors to the EXT. IN on my receiver?
I was also planning on using the Mac Mini to play video files, many of which are probably 5.1. Is there a way to specify that 2-channel music uses the USB connection and videos with 5.1 soundtracks use the HDMI connection?
For simplicity's sake, perhaps I should just go HDMI to the Denon for everything. I'm amazed the DACs on it are so cheap, considering it was such a pricey piece of equipment!