1. Doubt it. I see no reason why the DVD player's DAC would be better than the reciever's DAC for CDs and vice versa for DVDs. You have to watch what you read. There is a lot of crap floating around out there...
2. No. It goes straight from the (digital) DVD out the digital jack, into the receiver's digital jack, where it is converted to analog.

I am the Doctor, and THIS... is my SPOON!