Audyssey is not in the signal chain for Direct or Pure Direct modes... but that doesn't mean it's a pure analog path from inputs to outputs. What both do is disable more/most of the DSP features for audio and video. Depending on the model and feature set this can be somewhat different - like in your stereo receiver. However, in the highest end models PD
supposedly also moves the crossover to the analog domain. DM Holdings are quite quiet in the details... for obvious reasons (i.e. someone won't like it - no matter what they implemented).
If "audiophiles" got their way (PD mode makes the processor into an analog preamp with straight wire performance)... support would be innundated by people calling about how their unit "just stopped working" - since hitting that mode would kill all digital inputs. That's not why 99% of their customers buy these after all.
In Direct mode you lose Audyssey, EQ/tone control, Matrix modes, etc. In Pure Direct mode you also lose analog video inputs, displays are turned off (but wake briefly during input changes, etc.), and all video DSP functions (lip sync, resolution & color upsampling, etc.).
It's easy enough to know that it's not fully 'disabled' since you will still have decoding of surround formats and processing of audio from HDMI inputs... which you wouldn't have if it were truly using a separate signal path. It's too bad that the balanced analog inputs are treated essentially the same way on the 880X models... but it makes sense. If everyone got their way, we'd have a fantastic swiss army knife of audio - of course, they'd probably price it north of $7500 as well. Add to that the fact that only 1% of their customers would ever be likely to use those additional features, and it makes sense why it works the way it does.
Still doesn't mean they couldn't have gotten better performance out of the DAC however... but there again "good enough for 99%" probably directed the engineering goals.
@vert - there are quite a few variables in that test that could have affected level, SNR, etc. which could have been detectable. It's also possible psycho-acoustically, that simply knowing there was a 'better' device in the chain made a subjective improvement. The HDMI signal was a DA with decoding, and the USB was a DA-AD-DA conversion... depending on what filters are employed in each device and for which inputs/outputs it's quite likely there was a difference. Whether that difference was
more accurate to the source or less is much more debatable without measurements.
None of that changes the fact that you liked the DAC better... so listen that way and enjoy it! I know vinyl is the least accurate source material... but I still prefer it for some recordings. I do prefer to convert it to digital so it is preserved in all it's noisy goodness (and available anywhere in the house or car).
I'd definitely get this one before gambling on Walmart - full warranty (auth reseller) and much better price too (they also have a refurb for even less).
