In reply to:
My guess is that the EXT. IN on the Denon bypasses all the receiver functions. But I am not sure. Thanks
As far as I know, this, indeed, is the case. You should make your speaker settings for SACD on the Sony. Don't forget to select the multi-channel inputs on your Denon when playing SACDs. The settings in the Sony will only be in effect when you select the multi-channel inputs. When you select the analog or digital input for regular CDs and DVDs, the settings in the Denon will be in effect.
