<font color='#000000'>Goerge,
I too have the DV-8300 but with Denon 3803.
As far as I can tell it works like this:
When connected to the Ext. input, there's no ADC/DAC in the receiver at all. The analog goes stright to the power amps. What you get from the 'Pure Direct' is the turning off of the video circuits.
To have no ADC/DAC in the receiver not through the External inputs, the analog mode + pure direct have to selected and the subwoofer 's channel level have to be set to off.
The DV 8300 have 5.1 analog outputs + 2 extra L/R channel ouputs, so you can wire 6 cabels to the external inputs of the receiver for pure analog apming by the receiver, and the 2 extra L/R outputs to the analog inputs of CD or DVD on the receiver to have them ADC/DAC processed by the receiver.
With the Denon 3803 I've found it better to use the external inputs exclusivly for both 5 channel and 2 channel sources. The Marantz (it seems to me) does a noticably better processing then the receiver.</font>