Digital room correction, any recommendations?

Two-channel.

Do the room first, you may not need anything else.

I'd highly recommend acquiring software that lets you see the frequency response and reverberation times of your room. Then you can apply room treatments to deal with the areas which can be fixed.

As for digital room correction, I've tried Z Systems and Audyssey and most recently Trinnov. I use a dedicated Trinnov unit that does 4 channels (recently released). I auditioned it for some time in my system before decidig to go ahead with the purchase. It has proven efficacious and worthwhile and I am quite critical of things that alter timbral purity, resolution, etc. One of the nice things about the Trinnov is that it has a highly detailed interface that provides a tremendous amount of information as to the sound in your room and also the means to make fine adjustments over a variety of parameters. The downside is taking the time to understand what you are doing.

Good ideas, Classicjazz.

1. Let me suggest two options for measurement:
RoomEQ Wizard (freeware) but you must add SLM or mic/preamp
XTZ (not free) but includes all necessary hardware/software

2. Good sources for room treatment materials:
www.realtraps.com
www.gikacoustics.com
www.atsacoustics.com
For DIY information:
www.sensiblesoundsolutions.com
http://forum.studiotips.com/

3. Audyssey works well but even with the Pro version, there is limited control. If you are OK with point-and-shoot, Audyssey is the way to go. Also, JBL and KRK have 2 channel devices which, although different, work similarly.
TacT, Trinnov and JBL Synthesis are much more capable and much more complex.

Lyngdorf Room Perfect but it is not cheap ... I think this is similar or same as the technology licensed to the aforementioned KRK.