Are lossless Codec's worth upgrading my processor


I have a lexicon DC-2 processor which has a number of the older codecs and lexicon's 7:1 surround capability....works great with HDTV. However, now I'm going to get a bluray player and of course today's technology has lossless codec's and HDMI 1.3.

I can connect a bluray player thru digital to my Lexicon DC-2 and still decode the non lossless codecs...well at least some of them.

The question is....how big is the difference in sound between the new lossless codecs and DTS, Dolby, etc. Is it night and day....or just a little better...or just marketing hype?

(Lexicon DC-2, NHT Power 5, NHT/James 5:1 speakers)
ghstudio
Thanks for the input. I think the Krell is just a little more than I wanted to spend :) I'm going to look for a used integra 9.8 to give the new codec's a try. I sort of suspect that the integra, even though it isn't "high end" will actually sound better than my Lexicon.
Kennyt,

Are you an audio dealer or manufacturer? You seem eager to get our friend Ghstudio into some new gear. :)

I admit, I have not heard the new formats, but it is hard to imagine how a movie's soundtrack could be improved much beyond DTS or Dolby on SD-DVD, assuming the preamp-processor, amplifier, and speakers are high quality. Personally, I often skip the ProLogic IIx overlay, and just enjoy the audio in 5.1 or 6.1. If the Lexicon has 7.1 analog input and the BluRay player has 7.1 analog output, then you can enjoy the new lossless formats without buying a new HDMI-enabled processor.
Javachip,

No, I have nothing to do with retail audio sales.

The DC-2 doesn't have a multichannel analog input as I recall, but your point is correct if it did/does.

I would encourage him to replace the pre/pro as that was a low model of early Lexicon and to me always sounded harsh and overly digital, and as you said, 'it is hard to imagine' you really need to TRY it and see if you don't notice a huge difference, I suspect you will as even on my receiver based bedroom system the difference is huge, even to my wife, forget about the reference rig!
I am in the camp that believes that the new audio codecs available via Blu Ray disc are a quantum leap forward in sound quality.

These new codecs have renewed my enthusiasm for home theater.

Dolby True HD and DTS HD Master Audio are stunning. They approach the realism of vinyl and I am totally stoked.
The DC-2 was the flagship of Lexicon, not a low model...but electronics have come a long way. It does not have 7 channel analog input, but it can be easily modified for $185.

Alternatively, I can buy a used Integra 9.8 for $800 which has the latest lossless codecs and probably will sound better than the DC-2, just because it uses much more recent chips.