You could consider something like a Cambridge audio or Rotel integrated amp.
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Like others noted, I hate to see you drop good money into something that old.
This could be a little expensive for you to consider, but NAD came out with a "two channel" Receiver with a built-in DVD/CD player combination unit late last year, its called a L-53.
The unit retails for 600 but can be purchased at a discount, I purchased one from my local authorized dealer and it comes with a two year warranty. I wanted something better than a entry level receiver, but did not want to spend big dollars.
I'm using it in a small back bedroom with a simple two way floorstanding speaker and have a TV/VCR connected for both audio and video switching. Sounds alot better than I expected, has a nice remote control that works my TV and VCR. Like you, I have no interest or the space for surround sound or multi-channel set-ups.
When my friends drop by with the little ones, they can plug video games into the front AV Jacks with no problems and it also has an alarm clock or you can set a time for the unit to shutdown at night. I use that feature often.
I think their is a review with more details at www.enjoythemusic.com
Best of luck!
Most all the receivers on the market today, especially those at Best Buy / Circuit City, are under-built, over-spec'd pieces of shiny plastic. As such, don't believe their power ratings ( NOOOOO WAY ) or their distortion spec's. If it came down to buying a new receiver for $100 - $150 or having a 12 year old NAD fixed for about the same or less money, i would personally fix the NAD. That is, so long as the repairman is both honest and competent and willing to stand behind their work. Sean
PS... While he's in there, tell him to replace the bridge rectifier or diodes in the power supply with something that is "beefier" than the original parts. This might be the problem itself.
The new NAD C720BEE is a great receiver for future flexability (A+B speaker outputs, dual zone capability). Plus it sounds good too. If it has extra inputs that you are not going to use you can simply ignor them (that is not where the extra $$$ in the retail price come from by comparison to the el-cheapo Sony).
For a good budget stereo receiver the Onkyo is a big bang for the buck. They are fairly honest about the performance of their gear.
I agree with Sean. However, if you really want something new, I could make a great recommendation.
The Sharp SD-EX111 is a small "all-in-one" executive type unit. It has a tuner and CD player built-in as well as a 2-channel "Digital Amplifier". The unit comes with a multifunction remote too.
The SHARP unit is really good, even considering the $499 MSRP. However, when it was on closeout for $79 at Overstocks.com, it became a true Deal of the Century.
Take a look at this long post on AudioCircle for some incredible comments. I own the unit and I pretty much agree with the folks that posted on AudioCircle.
These units are now sold out at Overstocks.com, but there may be some available somewhere else. I think this unit would still be a good value at more than double the $79 from Overstocks.com.