The video quality should improve a bit, but not too much as your TV seems to be the weakest link rightnow, not the source.
An HT PC would provide a lot of convenience, but no improvement in quality. You would get same (or similar) quality if you still use your AVR's DAC, and poorer quality if you use the analog audio out from the PC. Standalone DACs are good but more expensive than dedicated CD palyers. An HT PC along with the Squeezebox sounds good, but the Squeezebox itself costs 14K plus tax.
An HT PC would provide a lot of convenience, but no improvement in quality. You would get same (or similar) quality if you still use your AVR's DAC, and poorer quality if you use the analog audio out from the PC. Standalone DACs are good but more expensive than dedicated CD palyers. An HT PC along with the Squeezebox sounds good, but the Squeezebox itself costs 14K plus tax.