Which Processor?

Lexicon MC-12. Lexicon regularly offers a trade-in program if you want to buy new, so you could get credit for your MC-1. They also are readily available on the used market.

The MC-12 has not only support for 6-channel analog inputs, but has analog bypass for both 2- and 6-channel. And, of course, it does HT like no other. -Kirk

I have experienced great results with a Krell HTS 2 and B&W speakers. The HTS 7.1 offers analog pass through.

I also have had great results using a Krell 7.1 with N802's.

Why do you need to upgrade the MC-1 to use the new SACD/DVD-A player?

To my knowledge all the current SACD players have analog outputs and do not have a digital output. I am told it is a copyright issue.