Help with AVR ACD and DAC

Hi i am new to AVRs as i used to use 8051.

I am thinking of using a Atmega324p-20pu to read in music throught its ADC and transmitt the 10bit digital data out over an optical link to be read into another Atmega324p-20pu DAC to be output on a speaker.

Which software package would allow me to programm this?
How would i go around programming and setting up the ADC and DAC in the AVR?

many thanks,
Mohit Gadhok

Firstly, you should only expect 10-bit performance from the AVR's ADC at 10k samples per second, barely a high enough rate for telephone quality voice. And that's mono, not stereo.

Second, the AVR family doesn't have DACs built-in so you will have to add your own. If you have a lot of AVR pins, you could put an R-2R on them, or you could use the PWM.

Also, if you don't already have your ATMega324-20pu parts, beware they are not recommended for new designs. If you're just playing this isn't a problem. For a commercial project is pays to use a part with a future supply.

How would you go about programming this? Well, start on page 240 of the ATMega164P/324P/644P data sheet.