"Dvd-audio ready" can also mean that the 5.1 analog input
doesn't RE-digitize the incoming analog signal*. This is significant because the whole point of the sacd & dvd-audio high resolution formats is to use either faster sampling rates or larger sample words (i.e. 24bits instead of 16 like with CD) and if the receiver redigitizes them into a lower resolution format like many do, (usually 48kHz), technically speaking you will be losing the advantages you paid for.
But
audibly speaking this can be an academic matter: a good analog-to-digital convertor (DAC) can be very transparent and unless you own very revealing speakers you probably won't even hear the difference. And bass management circuits-which people with small satellites have to use-
have to redigitize to do their job, so that is a tradeoff some need to make (though few recievers under @$700 have this feature for their 5.1 inputs anyway).
But if the receiver uses 96kHz/24bit DACS, personally I really wouldn't worry about this issue. Though I won't lie-I would still prefer the receiver not redigitize at all becuase that is one less conversion that could possibly add distortion to the music.
FYI:
usually you can tell if a receiver doesn't redigitize if when you choose the 5.1 input, you can no longer use the bass/treble controls (if they are controlled using buttons & not old-skool knobs) or Dolby Pro-Logic II or other DSP modes are locked out.
But just to make things more confusing, there are receivers/proccesors that use digital-based
controllers to adjust
analog-based volume level and bass/treble/balance levels. So no redigitzing is happening................
But whatever is happening, it if sounds good it sounds good!
*
so it can more easily perform internal duties like switching, bass/treble adjustments, balance, etc.
