Hey Everyone,
Sorry for the delay in getting back here, life getting in the way an all!
Firstly, thankyou all for the suggestions, I'll approach the ones I'm sure of and leave the others.
To JohnA: part 1
I like the sound of the $50 DAC. Can you be a little more specific though coz I spent hours online last night looking for one and couldn't find much at all. I found lots of A to D converters though
part 2
The Eyehomes analog outputs will not transfer digital sound from the Mac. I would have to convert all my DVD's to mpeg2/mp3 format on the Mac and then output it to the Eyehome which would kinda defeat the purpose of having my DVD'c there. Sadly, I already have it hooked up through the analogs and, although my tv programs recorded with EyeTv and my mp3's sound great, the audio on all my DVD's is silent.
To jotham: part 1
I found that product you linked to when I was searching the net last night. It looks like it would do the job but for some reason there is a minimum order of two from that dealer and I couldn't find it elsewhere.
part 2
The Yamaha specifically says in the manual on the zone 2/3 page in the Advanced Setup section:
"Only analog signals are sent to the second and third rooms. Any source you want to listen to in the second or third rooms must be connected using the analog (AUDIO L/R) jack on this unit."
I'm still a little tempted to try it but I'm fairly sure disappointment awaits.
Keep em comin guys, I appreciate all the suggestions. Eventually, by simple law of elimination, one of us will surely come up with something so simple that the rest of us will slap our collective foreheads in disgust
P.S. JohnA, what kind of mac(s) do you have?