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I've been pretty happy with kx, and just sticking to the built-in DSP. Though to be fair, I haven't needed much in the way of equilization (which is what ends up eating up a lot of the hardware registers).
And you are correct, the only advantages of going the ASIO/VST route is the higher availability of plugins. ASIO does not have any different sound quality over DX or WDM. It's main advantage is in more precise timing, which really doesn't matter in a playback environment.
Also, depending on your hardware situations, there is also the option of actually adding additional kx boards to your system (they ARE dirt cheap), to up the DSP resource count. You could, for instance, use one as your main board, receiving the media, and processing, say the front audio, and send raw rear audio to a second card via SPDIF, where it is then processed (including, sub crossovers and such).
There was a time when I was poorer, that I was using 4 kx boards in my home studio system for various DSP effects. For it's versatility, it's still the best bang/buck for sound processing, as long as you can stick within its limitations.
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2000 Ford Expedition Eddie Bauer - Bi-Fuel Gasoline/CNG
Intel D945GCLF2 w/512MB RAM, CL Audigy w/KxProject, M2-ATX, Lilliput EBY701
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