I thought it was pretty well determined that the DSP was the 49326 and that there was no way to step up to the 49400 - that was the reason that internal lipsync adjustment had been ruled out, and it explains some of the other features that are so reminscient of the Model 950 (a 49326-based unit with similar speaker distance adjustment options as the LMC-1).

The whole concept behind the LMC-1 is sort of an extreme version of the 950's concept four years ago: uber-affordable with good sound quality a priority over features. It must hit the sound quality nail on the head - the feature set is going to be a marketing challenge (bass management is not even as sophisticated as Outlaw's Model 1050 receiver was back in 2000, and in some ways a used 950 would give you more capabilities).
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gonk
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