Parasound A21 question - can I use both balanced and unbalanced input on the amp?

In my second system, I would like to double the duties for both HT and music. For preamp, I'm using a Cambridge Audio 851D, which unfortunately doesn't have any HT bypass or even analog inputs.

Originally, I was thinking that I might be able to connect the pre-outs from my AVR to the 851D. And then from 851D to Parasound A21 via balanced/XLR connection. But the problem is that my AVR has only RCA pre-outs and the Cambridge has only digital inputs.

Another option that comes to mind is something like this:
1. Cambridge 851D --> Parasound A21 via balanced/XLR -- for music listening
2. AVR --> Parasound A21 via unbalanced/RCA -- for movies

Is this even possible? Assuming it is, can this cause any potential harm to the amplifier if both balanced and unbalanced inputs are connected to different sources? What should I set the switch (Balanced/Unbalaned) to on the A21?