LEXICON MC-1 VERSUS MERIDIAN 861

You mentioned in your original post that high-end audio was your first priority. If this is true, then you won't get it with a home theater processor. Even the best processors, costing 2 and 3 times the units you are looking at, can't compete with a dedicated 2-channel preamp for high-end sound. If you're truely serious about 2-channel audio, then save some money on the processor and buy a decent preamp as well. Both can be integrated into the same system. There's all this talk about the sound of one processor versus another, but one comparison of any processor to a decent preamp will yield obvious results.

Check out Widescreen Review issue 38. Widescreen has reviewed everyone of the processor you are considering and the editor feels that the California Audio Labs units outperforms all of the others by a substantial margin and sets new standards for a surround processor. But of course you need to listen for yourself. Listen to the other and then listen to it and see what you think. The issues 35-38 cover most of the top processor. Widescreen was doing a review of processor. But one source is not the last word on anything and your opinion is what matters.

A good friend of mine wrestled with the exact same question a few months ago. He decided on the Classe, primarily because it did 2 channel SO much better. His explanation of why contained a detailed description of how the Classe is the only one with direct 2 channel analog throughput. I belive this means the other do a A-D, then a D-A conversion whenever a signal is run through it. Apparently, this process was detrimental to the sound, but removed when using the 2 channel throughput option. Perhaps this sis something you could look into. I know there are many dealers who will let you try it at home if you have the inclination.

The Ovation is from EAD, Enlightened Audio eadcorp.com

Another possibility. I use a Krell KRC-3 preamp which has one input as a "pass-through." So for pure audio, I go source to Krell to amp. (And Krell makes wonderful preamps). I hook my Lexicon to the pass-through input so home theater goes from Lexicon to Krell pass-through to amp. DON'T use Lexicon for direct audio since, as mentioned by others, it does A-D then D-A and the signal suffers audibly, even to my less than golden ears.