It's been a while since I was auditioning processors, but, of the ones I did listen to, I'd say the SP1.7 is a very big step up from most of the cheaper processors (e.g. Rotel, Cyrus, Myryad, Primaire), a big step up from the Naim AV2, and a smaller, but significant, step up from the Arcam AV8 (at least in terms of sound quality). It's comparable to the Meridian 568.2 (I've not auditioned the G-series) and it's probably at a similar level of quality to (albeit very different from) the Tag McLaren AV192R (and therefore, presumably, also the dual-SHARC AV32R).
It's definitely not as good as the Lexicon MC-12B.
I found the Lexicon MC-8 to be a bit dissapointing in comparison with the MC-12, but that was rather an unsatisfactory audition for various reasons, so I would advise you to listen to the SP1.7 and MC-8 side by side if you can.
You might also want to check out the Parasound Halo C2, as it's supposed to be very good value. I've also heard good things about the Krell Showcase and (although it's in desperate need of an update) the Theta Casa Nova.
The SP1.7 has a rather different philosophy from many other processors - Bryston focuses very strongly on the analogue side of things where other devices are more about the digital processing. The SP1.7 does more or less what you would expect it to be able to do - decodes all the formats, does THX Ultra, does bass management. But it's distinctly lacking in "features".
For example, you have to fork out a lot more money if you want video switching or an OSD - machines like the Arcam AV8 have that already built in. Bryston doesn't develop much of their own software, unlike a machine from Tag McLaren, or Meridian, or Lexicon where the post-processing software (e.g. bass management) is proprietary. Auditioning the SP1.7 against the Tag AV192R the Bryston was clearer in the front three channels, but just a little bit wooly in the rear channels. The Tag had razor-sharp steering to the rear, but a hint of distortion and brightness in the front channels.
Similarly, something like the Lexicon MC-12 is clearer in the surround channels.
You also won't find features like Dolby Headphone or Parametric EQ on the Bryston. (There will eventually be a DSP upgrade which is likely to enable Dolby Headphone, but James Tanner seems to be strongly philosophically opposed to EQ functions). You also won't find Logic 7 or Trifield.
The basic sound of the SP1.7 is very good - very neutral, quite clear. But it's not quite as clear or as good for music as I'd hoped it would be - when I listen to music I use the SP1.7 as a pre-amp and feed in the analogue outputs from my Arcam DV27 player, which isn't a bad CD player by any means, but isn't exactly state of the art either. This isn't much better than the SP1.7 sounds in stereo, but it is better.
The one area where the SP1.7 truly excels, of course, is as an analogue pre-amp (when you have it in analogue bypass mode). As a pre-amp it leaves every other AV processor I've heard gasping in the dust, the MC-12B included. You'd certainly be very hard-pressed indeed to find a better quality 5.1-channel analogue pre-amp!
(Maybe the incredibly ancient Linn 5103 could do a better job in stereo, but it's absolute rubbish for anything else. I dare say the newer Linn Kisto is excellent, but if you could afford one of those you'd be auditioning an MC-12, Theta Casa Blanca II, Meridian 861, and maybe even Mark Levinson!)
