I've read this entire thread and have tried to learn and understand what I can about adding a DAC to my CD listening. I think I've got the gist of it, but offer this recap for possible correction by the DAC-experienced.
1. Any CD player with a coaxial digital out is a candidate for this device. I have a Denon DCD-820 (circa 1989) that has a single extra RCA jack labeled Coaxial Digital Out. My cheapie "CyberHome" DVD-300 DVD player has the same jack. (Subquestion: Should there be a sound quality difference between them? I recently compared a store-bought CD played through my old Sony CDP-C20 changer and the Cyberhome and could not really tell any difference.)
2. Despite the aforementioned jack looking like a standard RCA, it will require a special digital cable to connect to the DAC box, and this cable is not necessarily cheap. I still do not understand how stereo sound is produced off one cable, but apparently it just works that way.
3. Once the DAC is plugged into the CDP using the coax digital cable, standard RCA stereo cables connect the DAC into the AUX inputs on your receiver or amp.
4. After the DAC "break-in" period, one can enjoy substantially improved audio (in most cases) off any type of CD.
When I run a DVD movie through my system, it always sounds much better, hard to define, but no doubt about it. Can I expect this quality of sound when running CDs through a DAC, like the NC203.2?