Best preamp/processor for audio and home theater?

I just got the RDC-7, and it is really an excellent product. I have been testing the RDC-7 D/A vs. my CAL Alpha DAC. They are so very close, I could sell my CAL and be happy. The CAL is a Tube DAC, so it does have that Tube magic in the mid-range. My wife likes both, she describes the RDC-7 as Detailed and the CAL as muddied.

The RDC-7 has analog bypass and is so easily customized, I can't believe it. Their customer service is very helpful, I spoke with them during my search, to ask about their direction with this product line. As I am sure you know, the parent company is Onkyo, and this name is not really on the Hi-end list of Manufactures. This is intimidating to some who feel comfort in the "Name Brands". I explained my concerns to the Customer Service President, some of the advice I was given is "It is better to buy a Low-end product from a Hi-end company, than a Hi-end product from a Low-end company". The Rep assured me that Integra Research is indeed trying to become its own company, that is making a bid for the "Hi-end". He was very knowledgable about the product, and asked m to call back to explain why I did or did not purchase the unit.

There are so many surround and listening modes that are completely customizable for EACH input! Very easily laid out remote and great on-screen display.

Read the latest reviews of all of the HT magazines, they can't all be wrong. This unit performs HT surround duty better than I have heard (Lexicon MC-1 which is really good), and performs quality CD conversion that is both Musical and Emotional. The unit retails for $4K and I am sure you can find a use for the extra cash.

If I did not answer any of your other questions, please post back and I will do my best to try.

Ton1313, thank you very much for your thoughtful comments. One of my problems is that apparently no one has reviewed the Lexicon MC-12 yet and I am not sure the comparison to the MC-1 is fair. You confirm the great performance of the Integra as a surround processor - my main concern is how good is it as a preamp for 2-channel audio? Does the RDC-7 have a pre-out (coax or balanced) to use an external audio preamp and amp to run the 2 main channels for highend 2-channel audio?

Yes the RDC-7 has a Digital out (coax and tosloink) to go to an outboard processor or DAC. What kind of Audio Pre are you concidering?
My main concern was to get rid of some of my components, I had a seperate AV Preamp, Separate Digital Processor, DAC, etc. This unit has combined the Pre and the Processor. I am still testing with my DAC to determine if I want to get rid of it too. I have been listening to the RDC-7 DAC's and I enjoy them quite a lot, the only thing that is different, as stated earlier is the "tube bloom" in the midrange.

I have the same objective you have, i.e. to get rid of some components but keep the high audio quality. Im am not sure that there is at this time any surround processor that REPLACES a highend chain between a CD transport and the amp. My current Yamaha DSP-A1 processor definitely does not. So I run the CD transport's digital signal into an Audio Synthesis DAX2 D/A converter, its analog signal into a Krell KRC preamp and its 2 channel outputs into a Krell KSA-300S amp. When I run DVDs, the 2 main channels exit the Yamaha pre-out into another input of the Krell KRC preamp and then into the Krell amp. When I switch the only thing I have to change is the volume of the preamp to adapt to the 2 main channels to the output of the others (5.1). Works really well for both audio 'pure' and movie 5+1 sound. Disadvantage: lots of components. Have you tried this for comparison of your inbord and outbord DAC/preamp ?