I was also looking for a new processor a few months ago as an upgrade from my Rotel RSP-1066 and for home theater use. I was primarily looking for a processor that could offer much better detailed sound from my home theater, video upscaling was a secondary factor and didn't really matter since I'm extremely happy with the video upscaler in an Oppo BDP-83 player. I contemplated getting a newer Rotel, Integra 80.1, Marantz 8003, Classe SSP-800, Anthem AVM50v, or Arcam AV888, and decided on the Arcam AV888; couldn't be happier with it! It sounds excellent in my 5.1 home theater with B&W 805's, haven't tried it in 2-channel yet. Very natural voices and sound, excellent detail comes through, involving, dynamic, etc. I think the only other better option at a slightly higher price would be the Classe SSP-800, which I've read is even better if using for 2-channel a lot. If you wanted to go lower in price, then the Marantz or Integra would probably be the way to go from what I've read, haven't heard them personally.
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