I've been using the 2-channel preamp + DD/DTS processor for the last 4 years, and I think it works extremely well.
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One question, let's say I don't use the HT bypass, how does one know what unity gain is??
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I don't have an HT bypass on my Parasound 1100D preamp, so this is my calibration sequence:
1) Use an SPL meter + calibration DVD @75dB for VE or 85dB for AVIA
2) Set the DD/DTS processor's volume control to reference level
3) Play the calibartion DVD for main speakers
4) Adjust 2-channel preamp's volume control to 75dB or 85dB on SPL meter
5) Mark 2-channel preamp's volume control position (for me it is exactly 12 o'clock or what is commonly called unity gain).
You can continue to calibrate the other speakers, but the 2-channel preamp doesn't get involved.
When I listen to TT or CD on the 2-channel preamp, the volume is typically between 9 o'clock and 10 o'clock