I am confused about the pre-outs. If I connect to these. Which Function do I select? The nad has Cd, Phono,Tuner & video.
Also I use to have an old Yamaha equalizer. And I remember using the tape function for it. Is that an option?
I think you would benefit from learning a few fundamentals. A DAC produces a line level signal, which basically means that the loudest possible digital signal will be turned into a ~2V analog signal. Less loud parts will have less than 2V. A CD player, tuner, tape deck, etc. will also try to produce a line level signal, i.e. analog signal such that the loudest segments won't exceed 2V or so.
The signal from a phono cartridge is lower and also changed in terms of frequency response to better fit on a record, so a phono preamp is needed to fix the frequency response and apply gain, that is increase the volume of the signal to line level. Your receiver has a built-in phono preamp.
So now we have a bunch of line level signals. We need to select one that we want to hear, which is one of two functions a dedicated preamp would have. Next we need to attenuate the volume, i.e. reduce it, which is the other typical function of a preamp. Your receiver has such a regular preamp built-in as well. Its output is available via the pre out connectors.
Just like with a regular preamp you could connect that to a power amp (such as the Vidar or Aegir, or powered speakers (basically speakers with a built-in power amp). Or a subwoofer, which is essentially a powered speaker that specializes on low frequencies.
However, your receiver has a built-in power amp as well, accessible via the "main in" input. Otherwise it would just be a preamp.
And a power amp makes the input signal a lot louder and drives a loudspeaker with it. Since the gain is typically fixed, i.e. a power amp increases the volume of the input signal always by the same fixed amount, it needs to be attenuated beforehand to have some control - hence the term preamp.
Now for the tape out/in. If I remember correctly, the tape out passes on the selected line level signal as is, before the volume knob is applied, unless the tape input is selected (since that would result in a loop).
So if you simply use the CD input and tape in, the volume control and the pre out, your receiver is like a Saga, a preamp.
If you only use the phono in, select that input and use the tape out, your receiver is like a Mani, a phono preamp.
If you only use the main in, your receiver is like a power amp.
You can probably send one signal into the receiver and send its preout to a Vidar, and send a second signal to a SYS, and that into the main in, and your receiver would control the volume of the Vidar (signal A), while sending signal B to the loudspeakers attached to the receiver.
The cheapest regular receivers only have a fixed internal connection between the built-in preamp section and the built-in power amp section. Better models also have pre outs, for example to control a subwoofer in addition to the connected speakers. It's rare for receivers these days to expose the power amp section directly like the NAD does. But it's convenient if you want to process the signal externally, like you do.
I don't know how that would work with tape in/out since selecting tape in would mean no other input is selected, so nothing is sent to the tape out.