The problem with 768p output (as I learned while beta testing the 983H) is that there is no "standard" 768p: the video timings and horizontal resolution vary widely, making it impossible for a scaler to offer a "768p" mode without providing the user with some very complex controls for evaluating and coping with that variation. That is why OPPO omitted such resolution control from the 983H (in addition to a lot of software work, it would have required additional hardware to implement a truly "all purpose" resolution control). It's most unfortunate that 768p has proliferated as widely as it has, because that particular resolution is simply absent from any standards (even the HDTV specs, which include a laundry-list of resolutions beyond the 720p and 1080i that we're used to). On the bright side, converting 720p or even 1080p to 768p is relatively "simple" enough that most TV's can do a respectable job with it. Just get the deinterlacing done first - that's a biggie.
Lip sync controls are a good question. The Reon alone can't be responsible for that, although the implementation would hopefully include provisions for coordinating between the Reon and the DSP section so that any video delays created inside the 997 are matched with corresponding audio delays. There is still the issue of video delays incurred external to the 997 that we'll need provisions to correct for...