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
Tlg,

NO DVD's are encoded in Dolby TrueHD or DTS HD MA, only Blu-ray's can handle the bandwidth necessary for these, and most do have one or the other, especially on the new releases.
Is it true to say that to enjoy these new formats I would need to buy a large processor such as an Integra DTC 9.8 or Pioneer processor? I don't need a component with so many bells and whistles. Is there some small cheaper component that only strives on decoding these new formats?
I have an Audio Refinement Pre2DSP Processor. It does DTS decoding, but not the new formats such as DTS HD etc.. I have a Pioneer BDP-05FD bluray player. It is supposed to decode all of the formats internally in this player. Is it correct to say that I could use the 5.1 analog outputs of this player to my Audio Refinement Processor which has the 5.1 analog inputs and enjoy this new format without spending a lot of extra money on an Integra DHC 9.9 processor for example? Is it correct to say I would only need to buy 5 cables or is this a waste of time and money and I should by a new processor anyways for superior sound?
That's exactly why some bluray players have built in decoding and analog outputs....you only need to decode in one place. Just connect the analog outputs to your processor using 6 cables...not 5.