I want to change from 2 channel to HT but what....


I have a very good Karan KAi180 integrated amp, a diy cd player and Merlin VSM-m speakers. I would like to sell the Karan and purchase a used or new HT receiver or separates. I want to spend around $2500.00 (the used price of my Karan). I am looking at, in this order, B&K 507, Sunfire receiver or separates like the Lexicon MC-1 with a good amp. I have also read some good info on Yamaha, Denon and a new Samsung digital receiver. I have also read that Sony has a digital amp in a receiver as well. The Samsung is out of my price. My plans for the near future is to buy a new Panasonic 50" plasma. I would like the hdmi switching, 7.1 and THX Ultra. I don't think the B&K 507 or the Sunfire has these. I am not realy keen on Sony, Yamaha, Denon, Onkyo or Samsung etc. receivers for the only reason that I would not buy one for a 2 channel set-up, but I am willing to consider everything. I do want at least 170wpc, THX Ultra, DTS, DD, 7.1 and a good video switch hopefully with HDMI. I do believe a good receiver can sound as good as separates. Mybe not in my $2500.00 price range. My Karan integrated was an upgrade from $7500 Melos separates.
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What separates can you recommend for under $3000.00? Tweeter has a demo B&K 507 for $1630.00. For the price I am very tempted. I was thinking for separates a Lexicon MC-1 (used $1200.00) and a Sunfire amp (used $1500.00?).
The AVM20 here on Audiogon asking price is $1700.00. I took a quick look for used 7 channel amps and nothing under $1600.00. I want to stay around $2500.00 but not go over $3000.00. Maybe the AVM20 is only five channel, I don't know. Two of you mentioned Anthem, but neither said why.
I researched on the internet and found comparisons between the Denon 5805 and the B&K 507 and the reviewers chose the 507. I don't need HDMI, just good sound with some power.
I just spoke to a local retailer and he said Arcam AVR300. The only drawback is the 100wpc, but he also deals B&K and said the power ratings don't mean much the Arcam sounds just as loud as the 507.
Thank you all for your suggestions. I like the comment on the Arcam biamp ability and comment about why I need 7.1 not 5.1. I am leaning toward the Arcam. If I can run a 5.1 system and biamp my speakers with the other two extra chanels until more movies use 7.1 then I think the AVR300 is the amp for me. The reviews on the AVR300 are fantastic. Where did you purchase your AVR300 for $1600.00?
I decided on the Arcam AVR300. Thedautch is using the AVR300 with Merlins and recommends it as well as two dealers that carry both the Arcam and B&K. It should be here in 5 days. Can't wait. I looked at separates and found a review that compared the AVM20 to the Arcam AVR300 and the reviewer said he liked the AVR300 processor better. If I needed more power I could add an amp to the AVR300 analog outputs when I needed. This made the most sense.
Thank you Flrnlamb. That is the exact route I am planning to take. The AVM200 used is asking $1700.00 currently on this site. I am getting a new Arcam AVR300 for $1625.00 including shipping. From what I have read, the AVR300 has an exceptional pre-pro. If the 100wpc AVR300 integrated amp isn't enough then I will purchase a separate multi channel power amp to use with the AVR300's pre-outs.
Thanks for the power cord info Rackon. It's a great receiver! I would like to bi-amp my Merlins, but don't want to spend $250.00 for another pair of cables.