Are lossless Codec's worth upgrading my processor

THe standard DVD's audio is compressed, whether it is DD or DTS. Not that I haven't heard great sound from them, especially concert DVD's and well recorded movies. The new formats sound is supposed to uncompressed. If you check the audio bit rate with a Bluray player, a standard DVD plays at like 640kb. While a bluray plays audio at over 3mb. It offers the possiblility of much greater dynamic swings. I think you will have much greater clarity with any speaker, but it will really shine with speakers that can handle the wider dynamics without struggle. With a smaller speaker it might not be as dramatic of a difference.

It was worth it for me.

Here is what I noted when I went to the Integra 9.8 with the new HD audio codecs. For reference, I was previously using a Rotel RSP-1068 processor, which I thought was excellent in it's own right-

Bigger, more enveloping soundstage
More depth/layering to the soundstage
More relaxed/natural sound
More detailed sound

I wouldn't call it "night and day" difference, but I was not at all struggling to hear the difference, and it was quite impressive. I was somewhat skeptical at first, but now I have no regrets about rolling the dice on the new HD codecs.
Be warned- it is similar to making the switch to HDTV, in that SD cable stations just suck by comparison (I consider myself an HDTV snob). Pretty soon you won't want to watch movies unless they are Blu-ray discs recorded with the HD audio codecs.
Having said all that, you may be able to get the same or similar results by getting a Blu-ray player that internally decodes the new formats and send it out through the 5.1/7.1 analog inputs. This would be a cheaper option.

On a side note, the Integra also has Audessy room EQ/correction, which I am now a firm believer in- it is a wonderful thing.

Ghstudio, you can buy a blu-ray player that decodes the new codecs internally and not have to upgrade your processor. Just send the audio via analog outs to your Lexicon. The Panisonic BD55, for one, does this.

cruz123....the DC-2 does not have the analog inputs to handle this. I could get it upgraded for $175...but I am thinking that maybe the Integra 9.8/9.9 will actually provide better sound than the 1999 vintage DC-2....so I can put that $175 towards buying one of them.

Actually, I could buy the Panasonic 35 and save another $100....so I would have $275 towards buying the Integra gear...plus of course whatever I get for the DC2 (V4)