Short take: No reason to avoid it!
I confess I always thought of this band as a joke because of their name. I had never listened to them (knowingly) until I got into surround and bought this and their other two. I have to say I really like this disc, and the songs.
The mix is very good. I had the misfortune of bumping this up against Skylarking, and the fidelity and mix are so pristine on the latter that it made for a possibly unfair comparison. It is not that the fidelity on this is bad, but it is just not as shimmering as the XTC. That could well be the source material. And surround mixing has possibly improved since this was released in 2003; there are more people doing it and more to compare to. So while this (Barenaked) mix feels very open with some discrete elements, and I really like it, it might not compare to the current best and brightest.
That said, I find this a very enjoyable listen that seems to get better every time. Also, it can often be had for very cheap money in used record stores, although I was surprised to find the prices on-line to be a little closer to retail. You are looking for the two disc set (CD/DVD) in the slip case. I have never seen a copy of the DualDisc version. You can get one off eBay right now for $5 shipped!
There are also some nice stereo only bonus features including acoustic versions of the songs.
If you are a fan of the band by all means get this, and if not, check a sample of the songs (I like "For You") and if you like that than it is worth the effort to track it down.
Vote: 9