WD Elements Play with external DAC

Has anybody tried to connect Elements to receiver via an external DAC? I’m thinking about buying one right now… What puzzles me is what connections I should use.

Well, I’m supposed to connect my WD to the DAC with an optical cable, and the DAC to the receiver with an analog cable.Then, should the WD remain connected to te TV with an HDMI cable? Because how could I manage it otherwise? But can it have an HDMI and an optical OUT at the same time?

Please help me sort it out!

Well, I guess a question is, why would you want to use an external DAC?  

The WD already provides a DAC with analog outputs.

But anyway, yes, you’d leave the TV connected via HDMI, and have your audio out set to OPTICAL.   

The WD won’t care that you’re using a DAC.

Yes, you can have HDMI VIDEO and OPTICAL AUDIO simultaneously.

It’s all about upgrading my analog output (currently an Onkyo TX-SR608 receiver).

In fact, I’m choosing between a CD player and an external DAC for musical purposes. So far, I’m using a BD-player as a CD transport and the WD as the storage for my FLACs. I’ve got about 200 CDs “physically” and some 1000 CDs in lossless (on the WD, of course), so it looks like the WD is going to be used more intensely, at least in the near future.

Also, I want to save some money, because the DAC I’m thinking about (Lead Audio LA-100) is significantly cheaper than the CD player (Marantz CD6004 on my mind).