I have the same receiver and I've only tried digital with the SB3, mainly because I run digital through a Behringer DEQ2496 first for room correction. My guess is that the digital in to the receiver would sound best, but I would certainly try both and see which you prefer. However, the digtal Panny is not known for that great of analog inputs. I believe the CD inputs sample at 192 khz which should be transparent in theory.
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