HT - Which processor

All,

I am looking at a 500-1100 dollar budget for a processor, and similar for an amp (if necessary). What is a nice solid processor for that price range? I am one for building a nice system over time, so quality/flexibility is a slight concern. My expectations are probably pretty high for this price range...

As far as amps go, I have a line on a Parasound HT855 for around 400 bucks. Is that a good deal?

Thanks,
J