In reality, most cheap DAC with optical input do not work too well due to a host of issues, mostly digital noises. But TV audio are usually so poor in quality, you may get by until you want to play a better quality DVD.
You can get a decent performance DAC at the $100 level. Check out this thread at the Audioreview.com. You may find it useful.
http://forums.audioreview.com/digital-domain-computer-audio/cheap-dac-working-well-36580.html
Most better quality, inexpensive DAC are PCM only (a digital coding method) while most TV signal are Dolby Digital or DTS encoded. They are not compatible. If the TV setup allows you to turn off the DD/DTS signal to go PCM only, you will be ok. But not all the sets have that option.
Some very cheap DAC claim that they are DTS compatible and they are. But the sound quality is not most audiophile can live with when you want to keep the older high-end amplifier.
I use an older stand alone digital surround sound process, Technics SH-AC500D. It is not state of the art, but handles TV and DVD optical signal very well and has the DTS 5.1 option. I got it for less than $100 on Ebay.
Good luck and let us know what you find.