ssddx :
generally onboard audio is good enough for most people... unless you're experiencing an issue or are an audiophile onboard might suit you. your onboard is only fair quality its certainly worth at least looking at other options even if they arent strictly required. there is no need to spend $250 on a soundcard for the situation you describe... something like the xonar DX which is less than your proposed budget would work fine as it has the same DAC chip as the $200+ stx (it doesnt have the amplifier, but you dont need that).
if you ran a digital signal direct to the receiver (spdif optical, spdif coaxial, hdmi) it would decode the signal using its own DAC instead of your pc. there is still the possibility of distortion when encoding the signal, but generally this is more an isolated problem instead of the majority so you should be fine.
Well, I got it today. I picked it right up at the post office at 8:30am I was so excited to play with it that I took the day off of work lol This receiver gives me goose bumps. I have never heard a home receiver that sounded this good. I had my jbl speakers since the year 2000 and it feels like i'm hearing them for the first time.
I hooked it up just like you said, spdif cable. The processing on the receiver sounded a little better than the onboard. I have to admit, realteks alc898 is very good but, for an enthusiast like me, I like better. The receiver is on the brighter side and makes my jbls come alive with an insane amount of clarity. However, my jbl cf-150's are quite warm with a type of a crazy punch you in the face bass that will crumple a building to pieces, if they're powered in the right away.
So, for now, I have to find a subwoofer that will give me some more punch. My goal is to use this receiver specifically for my pc with a 5.1 setup (it will be one helluva sound system for a pc) I guess I need some sort of hdmi switcher to get the benefits from that type of processing. Help?
Then I'll really put my jbls to the test with a 300-500wpc power amp and I think a pre amp? Not sure, I have to research that some more.
Oh yeah, you're right, sound card not needed.