DAC for a HTiB DVD player

The DVD player and amplifier are in one unit and wired internally.

Even if you want to use the unit as a DVD player, and connect to an external amplifier, the unit does not seem to have a digital out. All I can see from the specs are S-video output, composite video output; component-video output. Unless the unit supports a coaxial or optical digital out, you may not be able to connect an external DAC.

Please look at the unit carefully and see if it has a digital out.

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what are you looking to improve in the sound? The clarity or dynamics? If it is clarity, then the DAC may not help otherwise if it is dynamics it may help a bit. I personally think it is overkill to use a DAC with HTiBs. Other components in your system should be at par to get better clarity and dynamics including your speakers, input source, transport (HTiB) in this case.

Hold off on spending money and invest in something better down the road.

I have a Sony HTiB DVD Home threatre player. It has jacks directly for connecting speakers. Is it possible to use a DAC to improve its sound ??

The model is Sony DAV DZ 120K
Sony DAV-DZ120K home theater system Overview - Other home video products - CNET Asia

If you want to improve SQ of music,then another option is ,buy cheap mp3/DVDp ,add DAC & input to your existing HTib via Aux in.This will make less use of your inbuilt DVDp & you can enjoy it to longer period.
new DVDP >DAC >HTib

You can also buy a good CDp & input to HTib.Mar 6002 can play mp3/WMA too.
CDp> HTib
The Marantz PM7000N offers big, spacious and insightful sound, class-leading clarity and a solid streaming platform in a award winning package.