Which way to go? Meridian 568.2 or Lexicon Mc-1 v4

You don't need a "top-of-the line" pre-pro for a significant difference over the Yammie.
I think I've heard them all. Meridian - nice, Theta - very nice, Krell - OK, Proceed - discontinued product line, Lexicon-yuck.
You should also consider Classe, Anthem and Sunfire as excellent values in HT processors that also sound excellent on music.
For 1/10 what you'll spend on a pre-pro you can make a big difference on your acoustics.

Snofun3 -

The beauty of music is we all hear different things, and so much sounds better to one than another.

While the Classe, Anthem and Sunfire do represent fine values, the Theta, Meridian, Proceed smoke them in both surround processing and 2 channel. In fact, though Proceed is out of business, with the price of the AVP-S on the preowned market sitting at about $750 to $900, I challenge anyone to find a better 2 channel surround processor for anywhere close to the price of the Proceed.
The California Audio Labs SSP-2500 probably gives the AVP the best competition, but again, another OOB company. The Meridian probably comes the closest in performance and price, with the Theta following. Classe would be next, with the Sunfire/Anthem, IMO, above the Yamaha/Denon line, but just MARGINALLY above the likes of Rotel.

While many folks bash the Lexicon gear for the lack of musicality, I personally disagree. It is the the processor, as it relates to the rest of the gear. I have run Levinson 33's through an MC-12B to a pair of Cello Grand Masters with phenomenal results for 2 channel. Did it compare to my Levinson 32 or Levinson 40, not really, but it was damned good.

Folks need to try the Lexicon processor a bit more instead of listening and reading about those that do not feel they are 2 channel worthy.

I currently run the JBL SDP-40 (aka, Lexicon MC-12B) with Conrad Johnson Premier 8A's to a pair of JBL K2S9800SE with an Esoteric DV-50S. The results are fabulous.

Samuelvelma - My vote would be with the Proceed/Lexicon first, with the Meridian second and the rest fall as a 3rd choice.

IMO -

Dan

Sorry I do not have experience with these processors. But, I have been searching around for processors to use for quite some time so I can relate.

MC-1 was recently compared to a Outlaw 990 on HT forum and the reviewer preferred the 990. I think they said the sound quality was similar but the increased switching options of the 990 won out. This isn't a slam to the Lex, but it's an old processor and many others have caught up to it and not what I think you should consider as leaps and bounds above the processors you have listened to on currently "top of the line". it's value on the used market is $1000-1200 and that's because it completes with processors in that price range.

Now, the Meridian is one that I think is closer to your goal. It's still very highly regarded and compared favourably with the current high end Meridian fare, with less processing options. And if you can get one for under $2K, go for it! I have never seen one that low. Remember the 568.2MM is different than the 568.

Here's my opinion again, you keep upping your price thinking/hoping you are going to be blown away by one of these new processors but the laws of diminishing returns are in full affect here. Your comments to date make it sound like you notice differences before but didn't think they were worth it. You may be in for dissapointment as these differences can be subtle, worth it to some, but not others.

The other thing that I have noticed is that you don't seem to know what you are looking for. You just want it to sound better. The best advice I can give is to go into the best, most expensive HT dealer in town with your favorite DVD and listen to a $50k system. You may be very surprize that it will sound great, but, not THAT much better. This method has solved many cases of upgraditis for me. I hope it helps you. If you have already done this, I don't mean to be insulting, it's just that I always recommend to others to start thinking about the sound more than the equipment.

Porsche - Your experience is (much) different than mine. The Lexicon that I heard was dog-butt awful on music. The new ones are better, but that's only because of the general concensus regarding the old ones.

Samuel - I Agree with Porsche about the CAL piece, but I have serious concerns about OOB outfits when a processor's concerned. If the price is right OK - then also put Golden Theater and EAD in your shortlist. In fact I thought the EAD was a great HT value when new.

Just remember as much as a value an OOB processor is today, it'll only continue to drop very rapidly in value, so don't expect much in a couple of years, but then again, processors drop fast anyway.
Good luck

Agreed on the OOB.

Golden Theater, Proceed, Cal Audio (some rumblings or emerging again makes me VERY happy), and EAD.

Actually own pieces of all of the above. Proceed can still be repaired, so still a fine deal.