Thanks, Bob. The information was quite helpful. I'm now using a Proceed PAV/PDSD pre/pro that sounds very good for 2.1 stereo via XLR from the 5400ES and for 5.1 via optical from the Edge with PS3 and HD-DVR sources. If I am to update the pre/pro, I might as well include the lossless codecs, so it looks like a D2V would be my choice.
I have been considering a Cary Cinema 11a for its audio quality, but the bugs are scary, and no one advises using its DRC. An Integra 80.1 and a preamp with HT bypass is another option, but at some point there has to be D to A conversion and I'm not sure about the quality of that.
I've never read anything but praise for Anthem and its DRC, but its audio quality may not match that of the Cinema 11a. Unfortunately, it's not practical to try these various processors in my system.
Thorens TD 124, SME Series III arm with Ortofon SME 30 H cartridge into Parasound JC-3 phono stage
Ayre C-5xeMP, Oppo BDP-105, & Sony XA5400ES disc players
Parasound JC-2 preamp into Proceed HPA amps
KEF Reference 107/2 mains & 102 surrounds
Velodyne SMS-1 bass managers & a pair of HGS-15 subs