Eric,

Given the age and pedigree of your DVD player, I'd say that you probably don't need to second-guess your current connection. Going analog into the receiver is warranted only when the digital to analog converter in the DVD player is better than the one in the receiver. Either connection is legitimate, but the analog one isn't so privy to all of the digital goodies that a receiver may have to offer (like bass management etc). It's usually the domain of those with great CD or DVD players whom a friend of mine refers to as "two-channel freaks" (he's one of them). And, as I said, the analog route is better only under certain conditions.