How Important is the receiver vs separates in HT?

I'm in the process of significantly upgrading my HT system.I haven't been serious until now.My first step is to upgrade my receiver.Next I will upgrade my speakers.The system will be used for 100% HT. After looking at numerous flagship Japanese receivers especially the Denon 5803 and the Pioneer 47&49TX,I am about to make the decision to buy the new B&k 507. My thinking is that the processors in all these units must be very similar. Also with the post proceesing being THX ultra 2 in all the models I am guessing I shouldn't notice much difference there. Does anyone disagree with my thinking re the processing of these models? I am leaning toward the new B&k because of it's amplifier.I'm told, but am not sure, the B&k has a better(bigger) power transformer and more Mosfet amplifiers per channel than any of the Japanese receivers.Also that the B&K is more open and less harsh sounding.Do you agree?? The only hestitation I have (so far) is that people with Lexicon's Logic7 keep telling me it's processing ability "blows away" DPL2 and DD-Ex and even DTS-Es.Is that true in your experience and if so is it worth the huge difference to buy the Lexicon Mc12 + an Amp?I will be running a system with 2 sides and 2 backs.Lexicon owners swear they always watch all movies in the Logic 7 mode and it always sounds much better than any Dolby,ThX2 or Dts mode. Can that processor be that much better? Sorry for the long question But this is major purchase for me and I don't want to make a mistake. Thanks
Well, I can't speak to the newer (and much better, I'm sure) Lexicon MC-12, but I have a DC-1, and IMO, it is NOT better than Dolby Digital or other discrete playback. It is KILLER for non-5.1 encoded material (use it for cable/satellite, and you'll even enjoy the commercials!), but I still watch all my 5.1 DVDs in THX 5.1, which adds THX post-processing. Of course, the Logic7 in the newer Lexicons is probably much better.

For 100% HT, I'd say you COULD probably go with the receiver and be happy. The only thing about a receiver is that you'll need to avoid difficult speaker loads -- stick with 8 ohm models and you should be ok.

Keep in mind, though, that you don't necessarily have to buy a new MC-12 if you want Lexicon -- DC-1s, DC-2s, and MC-1s regularly pop up here on A-gon, and I'd be willing to bet that one of those, coupled with good amps, would stomp the receivers you're looking at for the same price -- not to mentioned being much more readily upgradeable when Lucas decides he needs even more money . . . . ;-0)
The biggest mistake you could possibly make is not trusting youre own ears. Dude.... Make a decision on what makes you happy. If youre so reliant on others opinions as far as making a purchase, I have some cheese in the fridge that I think sounds great. $500.00 a lb. and does DTS and 24/192.
Get good line conditioning and sit back and listen how smooth and open the sound becomes. Make sure you are using speaker wire that is heavy enough, too.

There's a group purchase going on at Harmonic Discord regarding the DeZorel filters. I might go for one unit, as they don't restrict power.
I guess if you have a separate HT digital decoder, you can upgrade it as new technologies come out, without having to change your base system.
I purchased a B&K AVR-307 first part of this year & had a TERRIBLE exp with it.This thing gave me fits from the start. First time it was hooked up, it sent a LOUD popping sound through all of my speakers each time I turned it off. I sent it back to B&K, Was told it had a wire crimp and that it was fixed. Second time I hooked it up, It did EXACTLY the same thing. I sent it back a second time. They said it had an additional problem they had missed the first time around and this time it was fixed correctly. I got it back, hooked it up a THIRD time and the popping was fixed, but now it would not let me access my higher number movie channels (HBO,Showtime,Etc) At this point, I was sick of the entire B&K adventure, So I returned it and swapped for a Denon AVR 5803. BEST move i've ever made! I suppose it's possible I just had very bad luck, But this has left a bad taste for all things B&K and I will not ever buy anything else with their name on it... Good Luck, and if you want to discuss this furthur e-mail me and i'll give you my phone number. Phil Griffin.
Thanks for the feedback.Magnolias will open soon in my town and I will audition the equipment before I buy it.I appreciate Tsrart's experience with Logic 7. It makes sense to me that 5.1 and Dts-es (6.1)would sound better after being decoded by those proceessors and it was hard to believe that the material would sound even better once Logic 7 is activated. Does anyone else have any experience with Logic 7 with 5.1 or 6.1 sources. Also thanks Phil for your comments re the B&K307. I had read it had some problems with "pops" while changing modes.B&K said they didn't want to put in noise reduction circuits because it would reduce sound quality?? Since you owned both the 5803 and the B&k 307 did you notice any difference in the sound quality(more open,less harsh....)power...etc between the 2 receivers.The 507 is going to have improvements but I assume the sound quality and power will be the same. Thanks again. Your experiences(and soon my ears) will help me make this decision.
Lexicon's Logic 7 does not use 7 discrete channels, rather it takes a 2 channel source and mixes to create 7, if that's what you like fine, but i'd rather use a discrete format like dolby digital-ex or dts-es. It seems like every AV preamp has its own brand of multi channel decoding from a 2ch source, it wouldn't suprise me if they were all the same considering how many of them use a third party manufacturer. Many of the other formats like THX EX, simply take the DD soundtrack and apply their own bass management and delay parameters, and are not real formats themselves. My advice would be to get the least expensive AV preamp that supports dolby digital-ex and DTS-es and then get a good 7 channel amp. At this time the outlaw 950 is probably your best bet. If you want to go the 1 box route, there are only a few companies that have a good amplifier section in their reciever and denon is not one of them. B&K and sunfire are the only two that i can think of that actually include a 7ch amp inside.
I have used the b&k 305 now for about 1 year. The nice thing about these recievers is that should you elect to go with seperate power amps you can do that at any time. Try the reciever first, then later audition a 7 channel power amp. I have been very happy with my 305 clean open with plenty of headroom for ht also sounds very good with dvd audio
I'm quite happy with a B-stock NAD T751 for $400! Its 5.1 synthesis from 2 ch stereo called "EARS" is really well done!