Best processor/switcher/scaler for new ht system ?

Craig,

Have you looked into the Anthem Statement D2??

Great sound and an excellent video processor as well.

Without a budget, I will assume you are looking for the best of the best. In my opinion, the top four are and not in any order: Chord DSP 8000, Meridien 800, Theta Casablanca with extreme dacs, and Mark Levinson 40 or 51

I second MikeLs assessment after having looked at the Anthem D2 and trying to make a call between all in one and separates. I just ordered the Crystalio2 after having tried the Lumagen HDQ and after having tried DVDO's and ordering and cancelling the DVDO VP50. Its 1080p capability makes the processor inside my Ruby seem like a toy and has flexibility and upgradability galore. I'd also like to add that the Crystalio has an absolutely amazing user interface that is far more intuitive and easier to set than the others. The feature set on the C2 is very rich as well. I also found that it's noise reduction was very welcome. Of all the audio and video components I've owned and/or tried this is the one that I can say has more lust factor. I did not want to send back the demo piece I tried and can't wait for the C2 to show up from Hong Kong.

Thanks Mike, I gotta say I love your room! I posted on avs under htm450mb there the same time I posted here but no reply.This is all kinda new to me I was really loving sacd ,phono and just now starting to embrace HT. I was looking at the Ruby and then the Pearl and I figured if I could get a 720p projector under a 1000, the only thing I would be missing was blueray. I have a 1080p sharp aqous 42 lcd in my den that I could watch hddvd and blueray with. I watch the news in the morning on it and my kids love it for games.
I didnt think about scaling, and mistakenley figured it would be years before I could get the full use out of 1080p. I use a pioneer elite 620pro in the bedroom setup as ht with denon receiver and had been where most of my viewing was done and I would listen ,in the listening room in the basement. Well this summer I ripped all the walls and ceiling out and I built the dedicated HT room. I was a little aprehensive about going all out for fear I would not want leave the comfort of my bed, but the 114 screen and incredible sound have been drawing in more and more . Much more than I would go down to listen. I am begining to wonder if I made a mistake and should have bought a projector that a least cost half what my centerchannel did.
Kennyt the d2, and mc 8 are at the top of my list ,they are beatiful ,but I am having a hard time justifing the cost because I just got a new vtl5.5 preamp and I bought a mint macintosh mr78 tuner . It is tempting to blow them out and just get a d2 or mc8 but my only concern is that I love the two channel sound I get now ,I have spent alot of time and money acheiving it and I question if any tubeless equipment(without a second mortgage) is going to give me that level of two channel performance. I am seriously considering going with crytalio and getting a used ssp and see how that looks on the hd70 and if i cant live with it upgrade.Whats the best deal on one? Thanks Craig

I would skip the Lexicon, to my ears they are still a little grainy, and digital sounding. Clearly as those above have posted, separates will allow you more future proofing, and video is blowing up right now, faster than anything else (except maybe PS3's) right now in this field is.

FWIW for an all in one solution, I like the D2. Everyone who has it loves it, and though not cheap, it's worth it in my mind.