This is setup is for my dad who would be happy listening to the old mp3 CDs I made him a long time ago on the Grado Alessandro MS-1 I bought for him a while back. I recently discovered that a couple easy changes were holding back my personal audio setup from being great and and while my dad won't be doing any A/B testing, I still want him to hear the best possible sound. I know the Marantz is overkill at the moment but I will be upgrading his source files and I plan on getting him another set of cans (HD650?) after this is setup. Also, I think he will appreciate the remote and $500 new seems like a really good price for what it is. I hope for this setup to provide countless hours of hifi enjoyment in his retirement cabin. After doing an obsessive amount of research this past week, here's the best I have come up with and I am hoping someone can review and make sure I am not overlooking anything. A Sony BDP-S6700 blu-ray player will be the transport for files on a USB flash drive or CD/DVDs. HDMI output to an HDMI audio de-embedder like the A-Neuvideo ANI-5.1CH4K. Digital coaxial/optical (I'm 99% sure it shouldn't matter which) from the de-embedder to a Marantz HD-DAC1. Then, obviously, the Grados or any future headphones will go into the 6.3mm headphone jack. Also I hope to have the HDMI audio & video to pass through the de-embedder to an LG tv for movie watching and using the USB menu. Thank you all, there is so much information here I started dreaming about it last night (that's how I know I've gone too far).