You can use the analog outputs of the 205 into an amp(s) and use the 205's digital volume control (no separate preamp required). You can also use the Parasound P5 by setting the output from the 205 to fixed.
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I believe your system will benefit from a AV preamp. I was in a similar situation as you, but I decided to have a 2/5 channel system. My priority is 2-channel. My system: Jeff Rowland 625 S2 amp that always powers my two front speakers. My ATI AT523NC 3 channel amp powers my center and rears when I’m using my projector. I use my Jeff Rowland Corus preamp for 2-channel and the HT bypass with my Marantz AV 7702 mkII for 5.1 surround sound. I use an OPPO UDP 203
I use an Oppo UDP-205 feeding a Krell HTS 7.1 into a Krell TAS. The results on video and audio are excellent. I have no plans to upgrade this system. In my case, the Krell HTS 7.1 is simply acting as a glorified volume control (processing is done in the Oppo with analog out to the Krell). I suspect if I used the Oppo volume control and fed the analog output directly into the Krell TAS, results would be similar, possibly better.
FWIW, I was in a similar predicament years ago. I solved it by using zone 2 of my processor for 2 channel listening with a dedicated amp and the main zone is powered by a separate 5 channel amp. Both sets of speakers are located in my dedicated listening room. A push a a button can get me to concert dvd or 2 channel listening. A bonus is I can play 4 front L/R speakers during dvd concert or really any input I desire
Yes , exactly Erik. It just occured to me yesterday. I JUST purchased
this Halo P5 about 6 weeks ago from an AudioGon Seller. Fair price, no
regrets. At the time I wasn't thinking about 5.1/7.1. Exremely pleased
with the P5 as a 2ch preamp. I'm also not worried about digital inputs
(which I understand the P7 has none) because I have have a Essence
HDACC external DAC that has loads of ins/outs (including HDMI)
Thank You Sir,