Let me try to summarize this. The OP may already have figured this out, but here goes.
The AVP and AVP2 were state of the art multichannel digital preamps when DVD was the standard source. If you can feed them an audio signal like the DVD signal, they should work fine. Those formats are lossy 5.1 Dolby Digital or lossy 5.1 DTS.
The Proceed will not decode the new lossless formats on Blu Ray, namely Dolby Digital True HD or DTS-MA. But if you select the lossy format (Dolby Digital or DTS-MA) from a Blu Ray the Proceed should decode that fine. The Blu Ray standard says there must be a lossy format available on the Blu Ray.
The way to get a DD True HD or DTS-MA into the Proceed is to have the source downmix it to 2 channel, either LCPM or analog of feed that to the Proceed.
The AVP seems to support 2 channel LCPM at 16/44.1 and, with the upgrade discussed in the review above, at 24/96 over S/PDIF.
Correction: The upgrade to 24/96 came from a review of the AVP, not the AVP2. Sorry.
Sorry to beat this to death.
By the way, why are you trying to use the Proceed rather than the newer Rotel?
The AVP and AVP2 were state of the art multichannel digital preamps when DVD was the standard source. If you can feed them an audio signal like the DVD signal, they should work fine. Those formats are lossy 5.1 Dolby Digital or lossy 5.1 DTS.
The Proceed will not decode the new lossless formats on Blu Ray, namely Dolby Digital True HD or DTS-MA. But if you select the lossy format (Dolby Digital or DTS-MA) from a Blu Ray the Proceed should decode that fine. The Blu Ray standard says there must be a lossy format available on the Blu Ray.
The way to get a DD True HD or DTS-MA into the Proceed is to have the source downmix it to 2 channel, either LCPM or analog of feed that to the Proceed.
The AVP seems to support 2 channel LCPM at 16/44.1 and, with the upgrade discussed in the review above, at 24/96 over S/PDIF.
Correction: The upgrade to 24/96 came from a review of the AVP, not the AVP2. Sorry.
Sorry to beat this to death.
By the way, why are you trying to use the Proceed rather than the newer Rotel?