Do I really need a processor?

You need a reciever or Processor if you want to do it right, the distance delay, crossover and levels are set by these units, go used they are stupid cheap.

While this is nice of you to do for your parents, are they going to understand and need all of this ?

Typical consumer processors and receivers are way too complicated for parents. I would go with a single speaker system, like Yamaha YSP or Niro.

Well, I don't really think that processors and receivers are too complicated for parents. I'm a parent. I can generally figure out what button to push to turn it on. All the complicated stuff is done automatically. I'm sure that you will have great fun setting it up for them anyways.

I would suggest going one of two ways. Get a basic receiver, a Pioneer to match the TV like Bob suggested would be great. On the other hand, if they are a bit technophobic and don't want a lot of clutter, then consider the all-in-one disc player/processor/amp units like those made by Arcam or Linn or NAD or whoever else.

Also, if my kids were going to do something nice like this for me (fat chance), I would probably like a Blu-Ray player too, and a Caribbean vacation.

If you want to have "volume control" you will need the preamp section of the preamp/processor.

The Oppo doesn't have Unity Gain.

I was thinking maybe a sony TA-P9000ES matched with a Rotel RMB-1085. I should be able to get hold of them for under $1500 and I thought this combo would beat any receiver out there. What do y'all think? Good point about the distance delays and crossover Chadnliz, I hadn't thought of that. Does anyone know what the DV-983 can do in terms of audio signal management? It just feels like a waste to get a receiver or processor when all my folks will want to do is turn it on, watch movies, and turn the volume up or down. These new players have all this great processing capability and then we're supposed to shell out more cash to duplicate it with a receiver? Any good TV nowadays has video processing also. This is just wasteful IMO-redundant. I really would rather make it work with an analog multichannel preamp and a good separate power amp.