$300 for older Rotel/Outlaw or do something else?

Sure. Quite reasonable on a tight budget. In fact, you could utilize the hirez codecs via analog to the prepro and let the br player decode/process for you. That's what I do w/ my oppo83. Just be sure the player does onboard decoding/processing. I know the panny80 does everything onboard if need be and a handful of other br players as well. You also may want to consider a prev-owned Onkyo 600 hundred or 700 series recvr that will do all the latest greatest things...and use the preouts to your amps!

Gave it some thought...Look for an Onkyo 606...hint-hint. See how you like it alone and then jack in the amps if you want/feel you need more.

The 606/607 should have 'pre-outs' not to be confused with the multi-ch in's. What are you using now? What is your goal. You have ideas but pardon me...no certain goal.direction. What do you want? A modern recv'r or prepro that cost less today than yesteryears 1500 dollar unit will most likely outperform the older. Technology was new and came at a premium. The technology as well as demand has brought prices down all the while getting better at function/versatility. You are quite limited with your budget and you will benefit by purchasing a newer recv'r rather than an older prepro.

Alpha...I stand corrected concerning the 606...no pre-outs. Bummer. Perhaps the 700 series has them. Nonetheless, I think you will be fine for getting into 5.1 with your choice as you seem really attatched to your spkrs. I am a 75% music guy myself and that's my primary concern with rig. Not familiar with the Rotel but if it has multi-ch in's you can use an oppo br or any player with onboard processing of the hirez codecs. You will love yourself for doing so. Let me/us know how it goes. Multi-ch music is awesome btw...a real treat when done right. I bought an Oppo 83 which will do everything music and video wise and it will be a mainstay far after the other gear is changed out.