how should i move forward...blu-ray etc...?

Rich,

The Bluray pic (1080P) is outstanding, though 1080i not a slouch but to get the best, 1080P is the way to go. I think you can stay w/1080i until you upgrade the display and you wouldn't be too dissapointed BUT it's the new audio codecs that will make you want to upgrade the soundsystem. You may be able to get a blurayplayer where the analogue outs into preamp will give you the new codecs. Cost of entry-a bluray player and a few cables. The difference is staggering. I'm sure some of te guys (and gals) here can recommend a bluray player which encodes the new codecs and pass them trhough the analogue out. I have a pioneer elite and an LG, but not sure if it encodes it as I use HDMI out into a new receiver.

I agree with Rich. I would buy a new BR player with decoding of the new formats and run that into the theta if possible. You have a great system!

that seems to be what i am reading guys. i am not exactly sure how that works or if the theta is capable. any further detail out there would be appreciated. thanks for the input so far.
finally posted my stuff in the systems forum (opinions)...feel free to have at it! it's kind of a crazy way to rig it up but works for us.

Hello Rich, all this talk on the 'Gon about the new audio codecs really has me in a state of deja' vu. The same sort of thing happened when Dolby Digital and DTS began to replace Pro Logic in the late '90's. Back then, as now, if you had spent good money on an otherwise great-sounding receiver/processor just before DVD came out and it lacked the latest processing ablity or the "Dolby Digital-ready" analog 5.1 inputs, you were SOL if you wanted to try the new DD/DTS formats without replacing your processor.

Fortunately, in your case your Theta has a set of 5.1 analog inputs. If you are not using them for multichannel SACD/DVD-A music from your Lexicon universal player, then you could buy a Blu-ray player which decodes the new formats in the player and hook it up via 6 analog interconnects. You could try the Sony BDP-S550 for less than $400 to see if the new lossless codecs rock your boat. For higher quality and more money, you could consider the Sony BDP-S5000ES, Marantz BD8002 or similar at around $2,000. All of these Blu-ray players will let you configure for a 5.1 system and will downmix a 7.1 soundtrack to suit your system. Of course you can still enjoy old-school DD/DTS from your Lexicon digitally connected to your Theta via a digital coax or toslink cable.

You may also wish to contact your Theta dealer regarding possible upgrades for your Casanova as it has an "open architecture" which should allow you to have it upgraded to decode the new lossless codecs and HDMI connectivity if/when Theta decides to offer it.

Good Luck! -jz

I own a Projector and the Lexicon RT10, while I dont have Blu Ray I do have HDDVD and I can tell you in my case the RT10 still was about equal enough to HDDVD to really be surprised, its an awesome DVD unit.
I only have a 720P Projector so maybe I cant see everything 1080P has to offer but all the same the Lexicon looks awesome still. I intend to go Blu shortly and do Multii RCA with a Blu player that has internal decoder because like you my Pro (Rotel 1068) isnt HDMI (Projector is though)
BTW you have a nice set-up! And welcome to the 'gon!