I've seen this listed as a feature for receivers. Does this mean that the receiver can process the multi-channel input from a DVD-A player through a single digital connection or would I still have to use the analog multi-channel inputs?
It means that it can process the signal but not necessarily through a single cable. Some inexpensive receivers and or DVD players still must use six cables.
My guess also. When DVD was new, many receivers did not have digital capabilities, so the manufacturers put in multichannel analog inputs and called the receivers "digital ready", to be used with a player that had built in decoding of DD/DTS because the receiver couldn't do it.
DVD-Audio is specific and requires matching connections. In other words you need 5.1 channel inputs to process DVD-Audio. DVD-Audio capable players have the 6 channel outputs on the back of the DVD player and will pass through those outlets high resolution sound to a receiver that will receive it. Most receivers with 6 channel inputs will accept it. It's not just marketing-ese, it's an actual function that really works and sounds great. I don't have it, but I've heard it a many shows as well as stores and it really is great sound, but it's sad that it hasn't taken a stronger hold like everyone had anticipated. P.S. the same applies to SACD (Super Audic Compact Disc) which is labeled by Sony.
"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.