I guess my first question would be what do you need the processor for? Upscaling of SD sources, deinterlacing or Upconverting and switching?
I use my Onkyo 885 prepro with a REON HQV chip. It does a decent job scaling SD sources and offers a few options to clean up the image (edge, mosquito noise, saturation etc.) I have found a few of the options to be helpful but many are only mildly useful.
From what I am seeing you can get a 885 (08 model) for around 800 bucks and it will give you HDMI 1.3 so you can get all the lossless codec's as well as Audyssey room correction and a host of other features. I've never owned a DVDO edge and I see it uses the Anchor Bay VRS chip. I just got that in my Oppo blu-ray player but I have not tested the scaling results yet between that and the REON.