Well,
I tried the following sources with my Denon 2310 AVR and KEF iQ7
1. Project Debut TT
2. Oppo 93 BDP. Tried the DAC in Denon and also DAC in Oppo. Similar results.
3. WD TV Live (for Flacs and WAV files) - HDMI to Denon and used DACs in Denon.
In all the cases AVR was set to 'Pure Direct' mode. But the results were pretty disappointing. I tried many things, changing speaker cables, costly ICs. Nothing helped. Then I tried pairing my Acoustic Portrait NJ1 power amp with Denon and just used the DAC and Pre amp stage in Denon. It was better, but not the best. Then I removed Denon completely and tried a budget tube pre amp with Acoustic Portrait NJ1. VOILA... I started to hear what I wanted from a stereo playback. Well not music nirvana though but tremendously superior to Denon in terms of great resolution, lush vocals and mids and good high end punch. I still don't get the right low end punch as my KEFs are slightly bass shy. But I think I can live with this new setup for some time
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I am not saying Denon is bad. Its kick ass for movies. I am not letting my Denon go. Will use it for my 7.1 setup.
Disclaimer : This is just my experience
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-John.