Best processor that is excellent for 2 Ch music

In regards to what Sgower mentioned, you can forget that!
Processing from the digital out into an outboard processor is always much better for dd/dts! It's never processing in the DVD player.

Yeah but for 2 channel, Sgower's option has potential. IMO better potential than a lot of Pre/Pro's offer.

At the same time, I do agree with Flrnlamb that most decoding done inside the player will be compromised to some degree. Of course to what degree depends on the player.

Actually, I'm really refering MAINLY to DD/DTS decoded 5.1 material. As for pcm material output from the analog out's of a good dvd player, that's another story entirely!...to a point.
Yes, often using a good dvd player into a 2 channel preamp and such is going to yeild better results for that application. Infact, my old Panasonic DVDA310 has superb 2 channel pcm and 24/96 resolution output from it's analog out's! However, going from my 5.1 channel out's into just about any pre/pro or preamp setup I know of, for processing DVD movies (DD/DTS material), has NEVER YIELDED anything but flat dynamics and lackluster overall 2 dimmensional sound! I have found this to be the case with every dvd player setup! Probably has to do with a number of factors. Basically, my setup's are digital-in from the DVD player for DD/DTS and PCM some times, and analog in for 2 channel pcm, depending.
I say depending because many of my setup's require bass managment and or "EQ'ing" for best sound, which means running full range from analog inputs (without something like an Outlaw ICBM) often leaves me with compromises in bass management and/or (sometimes, depending) equalization!
There's always compromises one way or another.

About the EAD gear used for 2 channel.I totally agree.
The Theatre Vision DVD player when used as a cdp is ok when you use the analog outs.It is really transformed into a different player when you run from its digital out(I use Harmonic Tech Magic one 1.5 m)into the Ead 5.1 processor.
I always marvelled at how good the sound was at the end of rented DVDs.I tried the dvd player. the processor and the EAD 500 amp with my CLS speakers and couldn't be happier with my 2 channel sound.Oh I bought a cheap Yami for the HT.Smooth, yet detailed sound,very musical.

Another vote for the used Sunfire Theater grand ....would be excellent in your price range. RCA and xlr connections, phono preamp and a nice tuner....if you've got good electronics to go with it, you'll be quite pleased.