Just a quick newbie question here. I've read through this thread and it seems the only difference between a cd and an excellent lossless rip is the DAC? How much of a (audible) difference does a CD Player or discrete DAC make when compared to PC Onboard Audio or Android Phone or even a budget AVR.
Also, when connecting a HTPC to a receiver which DAC is being used? Is it the PC or the receiver?
I think DAC is a very mature technology and you won't hear a difference between the DAC of $500+ AVR and dedicated DAC.
So I would connect HTPC to the AVR via HDMI and use a media software that allows you to bitstream the file to the AVR so that the AVR's DACs can process the sound.
I have my favorite songs in ALAC format on my iPad and stream directly from the iPad to my Denon eliminating the "middleman" (CD player, HTPC) and using the Denon DAC.
I've compared the quality of this to Blu-ray and CDs, and I think there is no audible difference.