HT processor recommendation

I am in need of an external home theatre processor to mate with my Parasound psp 1500. The Parasound has a DB 25 input for six channel input and I have a suitable cable. I have plugged a DVD player's six channel output directly into the Parasound and this works well. But, I want higher quality stereo sound and I listen to movies in stereo more often than multichannel. My current DAC is an Audio Note from the mid 90's that only does 44.1/48 khz; ie, it will not process the ouput from a DVD at all so I have been using the internal DAC of the DVD player when playing movies in stereo mode.

Any recommendations? I don't want to spend more than a grand; used or new is fine.