For that price, you can purchase a new Rotel RSP-1068 processor and Rotel RMB-1075 5-channel amp. The amp is 5 x 120 Watts. I currently run this exact setup with 805S and HTM4S and the sound quality is excellent.
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I have used both Parasound Halo B-52 and Edge G A/V (500W/5) with my 802D, HTM2D & 805N 5.1 system. Both work very well for theater and music. The Halo B-52 (125Wx5)may be a little under power, depending on your eventual choice of speakers for the front channels. However, a second hand/ demo Parasound Halo A-51(250WX5)should be within your budget and may be your best choice. The Absolute Sound Jan 2007 Issue 168 just did a review on the Halo A21, the two channel version. Enjoy the journey and more so the music!
I agree with Jmpwme. I have a complete CAL 2500 setup and the amp is a beast once you have a dedicate 20amp circuit for it. My setup is 804N(F) HTM1(C) and 805N(R). For the price, I think it's totally a steal for MCA2500 at $2500 used. It litterly will drive anything. To give you an idea, i've owned Bryston 4BST, 7BST, Citation 7.1, Adcom, Sunfire and Krell and nothing comes close to the MCA2500.
I too run the B&W speakers, currently running the 600 series, but also listened with a friends 802S.
I went with a receiver vs. separates, but one that is upgradeable to separates, the B&K 506 S2. LP $3,500 is, used about $2,200-$2,500.
Previously ran Rotel and also Denon, but always had to use a separate amp for the mains (for music listening) to get close to what I wanted. I actually ran tubes in this situation. Now with the B&K I am only using tubes for my second zone.
I went with the B&K for music listening, but got a decent bump from the HT side to boot.
I'm running the ARcam 350 on 803S, HTM3S and CRMS and it's a killer musical combination, in some ways a giant beating combination with great inner detailing and musicality. Do I wish for more power, yes, but you could spend a lot more money for less quality sound. I do like the theory that Brit gear works well with it's ilk!
I would take Bryston over the Arcam anyday. Bryston amps are quite a good match with the 805S and will offer more power and grunt compared to the softer-sounding Arcam. Later you might want to add the matching SP1/2 processor and you have a great system that is equally at home with music and movies.
I can see some are happy with their ARcam driving B&W's, so it all boils down to personal preference in the end.