DVD player w/ 2ch 5ch conversion ability?

Basically I'm looking for a DVD player that can play redbook CD's and other 2ch sources in a multi-channel format kind of like what NAD's EARS or Lexicon's Logic7 does in their recievers and preamps. The problem I have is that my preamp- the HK sig2.1, has really crappy DSP modes and not a true 5ch stereo mode, like my old Denon did. I heard the EARS thing is really good but I don't feel like getting a new preamp and was thinking of getting a universal DVD player anyway. So is there anything like that in the market or perhaps in the works?
Your idea of a multichannel player that includes matrix logic circuitry to create the missing channels when playing 2-channel media is very interesting. I have not heard of such a device, but it wouldn't be too hard to Mod an existing unit to do this job.

Of course Multichannel players go the other way (mixdown of multichannel material to stereo) unless the disc producer has prohibited this by some kind of code in the disc.
I think you're not going to find a DVD player that has such features on board. Changing your receiver or processor will probably be necessary.
I'd try to find a used Denon AVD-2000.

I use one for DD decoding and D/A conversion for 2 channel music. I don't like DSP modes, but on this unit I do find myself using them ~20% of the time. It's a wonderful unit and available used for as little as $200 via ebay or audiogon. It also has the 5 channel stereo mode you mentioned and liked (by Denon).

Almost any receiver will have analog 5.1 inputs making this an easy insertion to your system. The unit is also faily small. Check audioreview.com for AVD-2000 reviews as well.

Good Luck,
wfd107@psu.edu if you have any specific questions