Drewmb likely meant a AVR capable of decoding the new high rez audio formats would use the HDMI output from the Oppo. Kal most likely meant that as your Proceed AVP-2 will not decode the new high rez audio formats your stuck with using the Analog outputs on the Oppo for hi-rez. If this is not what they meant, it is still the case.
"Also, I could then then use a non-Hi-rez capable prepro with the Oppo and still get the the lossless codecs as the Oppo can decode them?"
Correct
"Also, I could then then use a non-Hi-rez capable prepro with the Oppo and still get the the lossless codecs as the Oppo can decode them?"
Correct