Chris,
I think the B&W 803s has a corssover freq of 350hz and 4Khz. so does that mean the passive crossover unit inside the speaker splits the audio signal in way that any signal less than 350Hz goes to the Bass cones, below 4Khz goes to Mid range and above 4Khz goes to tweeters?
Yes.
if thats the case how can the DCX2496 help me, if the passive crossover in the B&W redistribute the signal coming from the DCX2496?
You will want to use the DCX as a EQ - to compensate for baffle step correction error and treble response. You would enable and use a high shelving filter and low shelving filter, allowing you to smoothly change the power level of a wide band over or under a defined frequency.
If you ever intend to use subwoofers, the DCX is also the only proper way to integrate them. The DCX can also be used to cutomize bass signature of the subs or the 803S speakers.
by the way could you explain treble tilt and baffle step correction?
No speaker will have the perfect level of baffle step correction. The amount needed depends on room size, listening position, speaker placement and other related factors. As a result, the amount of BSC included on a speaker is pre-set and a compromise. Usually, the BSC is not enough, if you try to use speakers from from the wall boundary. In any event, by using a 6db/octave low-shelving filter set at a frequency equal to 1/2 wavlength equivalent of the baffle width of the speaker, you can adjust the BSC to have the perfect neutral lower mid-range balance.
As for treble correction - most recordings are made in a manner that adds substantial treble emphasis. Credible researchers have found that almost all listeners judge a speaker as more neutral sounding on most recordings when the speaker treble response is down a few dB by the time you hit 10kHz.
Assuming everything else is excellent(speaker linearity, distortion, low energy storage, etc., room acoustics, etc.), then these two adjustments will make the difference between a good sounding speaker and superb sounding speaker.
Also should I bi-wire the B&W 803s with the Yamaha P2500s? or should I leave it with the jumper cables on?
No point in bi-wiring anything unless you just have lots of extra cable that you are trying to find an excuse to use on something...
-Chris