My best advice is don't mix the 2. Have Home Theater for what it is and keep a 2 channel stereo system for music. The jury is still out on DVD A and SACD. Do recommend the Classe CDP .5 player as I have one and could not be more pleased plus it has HDCD. Check the HDCD website for a catalog of titles www.hdcd.com The Music Hall is another great choice as is the Muse and the new NAD 542 player all in your price range.
2 responses Add your response
At this point, I have not heard a moderately priced DVD player that plays CD's as well as the moderately priced Music Hall MMF CD 25 CD player. The Music Hall does an all round sensational job and has HDCD capability. I have owned one for more than 2 years and the $540 that I paid for it new was worth it. So to my thinking, the Music Hall is a no brainer.
For your DVD player, I would get a unit like the SONY DVP NC685 . It has been well reviewed, offers Progressive Scan, gives you very good SACD capability ... which you seem to have some interest in ... and it is pretty inexpensive ... $250 list.
I would not torture myself with the whole SACD viability debate. I like the way that SACD's sound and if the capability comes with the DVD player ... you can experiment a bit.