Need an Arduino Tone Digital Volume Control Method

CrossRoads:
What you describe there is using the PWM signal to limit the range of the VCC pins, which I'm pretty sure would't work that well.

Look at a part like this
AD5243 Datasheet and Product Info | Analog Devices
Put this in place of VR1, change R2 = 10K for gain of 1 on the output stage.

Gotta run out for a bit, will read the datasheet when I get back to see how noisy the part might be.

Hi... Do you know if this device(AD5243) you've mentioned is fixed resistance values or the chip is programable?

Tks a lot