depends on the blu-ray/dvd player in question. Some of the higher end Blu-ray players and dvd players have great bur-brown dacs or an equivalent. But some of the cheaper ones have crappy cirrus logic DACs.
But in the end DACS don't matter that much. The speaker or the headphone is going to make the magic happen.
If you have some awesome speakers or headphones it will still sound awesome with a 10 dollar cd player. You would be hard pressed to tell the difference between a nice Blu-ray player and an EL-Cheapo.
Dacs are for like the final 5%, I would try it with out one and see what kind of results you get. But your weakest link will always be your speakers or headphones.
Don't spend too much money on dacs.
The resolution of the source material is much more impactful on sound quality then an upgraded DAC ever will be.
Edited by Super MANSKITO - 7/31/11 at 4:49pm