Proceed PAV/PDSD Issues

Looking for some direction. Not new to the audio game. Before I get into my issues a little background info is in order. I'm running a home theatre and a separate 2 channel audio only system (both in same room) Recently I dug up a Proceed PAV and PDSD to use in audio only mode. Here is the issue I need some advise on. With only the PAV installed the PAV/PDSD remote will not function to take the unit out of standby or put it into standby. For the unit to go into standby I must shut off power via switch in back. When I turn on the switch the standby button light flashes amber. Holding the button for 2 seconds turns the unit on and I can use the remote to switch between sources and volume up/down. I can get no menu OSD on the connected TV. Mute button on the remote puts it into mute but not out of mute. Unit sounds exceptional with the B&W 803D2 speakers connected. When done listening Neither the remote standby button or the button on the front panel will put the unit into standby mode. The only way to turn the unit off is via switch on the back of the unit. Does anyone here have any ideas? I am planning to install the PDSD which leads me into another question. In will be hooking up a Musical Fidelity A3CD 24bit player (currently using its internal decoder) and connected via analog to the PAV. The CD player is about 7 years younger than the Proceed PDSD decoder. What if any benefit could be expected hooking up the CD player digitally to the Proceed and letting it do the decoding? Is the Proceeds DAC better than the Musical Fidelities? Keep in mind this Proceed installation will only be used for 2 channel stereo reproduction and no type of surround modes. I will be interested to hearing any suggestions to the issues mentioned. Thanks in advance