I agree with jsbail above. Especially in these times where significant new multi-channel formats are starting to emerge(DVD-A/SACD) I thinks it's wise to keep your powder dry in the processor realm. I'd buy the cheapest Denon/Marantz a/v receiver with preamp outs and use it for multi-channel stuff until the dust settles and we get a few generations of equipment under the belt.
Same for an A/V preamp. Unless you're willing to shell out big bucks for flexible architecture and upgradeability(and we've all seen upgradeability fall by the wayside in the past) you could be out in the cold in the near future. In addition, even with an direct analog path your signal is still passing through an electronics obstacle course that will have some impact on the sound.
So using a 2-channel preamp with a good stereo amp will not only provide you the highest quality audio, it will also afford you the most flexibility going forward. You're free to upgrade the stereo preamp, stereo amp, or A/V receiver at any point if you get the upgrade bug in any of those areas. And you've spent the least on the area that for now means the least sonically, that being the multi-channel processing and center/surround amplification, and the most on the critical 2-channel equipment.
Lastly, I'll throw some recommendations on the pile. On the solid state preamp side I'd look at the Adcom GFA-750 or Steve McCormack's new RLD-1 which both have processor loops. On the tube side, in addition to those already mentioned above, there is a little-known but fantastic preamp from PSE that rivals the best. As for stereo amps if you're looking to upgrade there too, to keep the cost down I'd look at buying one used, as amps tend to either work or they don't so I find them less risky than other components in the used market. I bought a used McCormack DNA 0.5 Rev. A for $1600 a year ago and am thrilled with it.
To sum up, I think you're still absorbing some potential risk and sound quality degradation with a preamp/processor, so for me the stereo preamp is the best-sounding, safest way to go for now. Best of luck.
Tim
Same for an A/V preamp. Unless you're willing to shell out big bucks for flexible architecture and upgradeability(and we've all seen upgradeability fall by the wayside in the past) you could be out in the cold in the near future. In addition, even with an direct analog path your signal is still passing through an electronics obstacle course that will have some impact on the sound.
So using a 2-channel preamp with a good stereo amp will not only provide you the highest quality audio, it will also afford you the most flexibility going forward. You're free to upgrade the stereo preamp, stereo amp, or A/V receiver at any point if you get the upgrade bug in any of those areas. And you've spent the least on the area that for now means the least sonically, that being the multi-channel processing and center/surround amplification, and the most on the critical 2-channel equipment.
Lastly, I'll throw some recommendations on the pile. On the solid state preamp side I'd look at the Adcom GFA-750 or Steve McCormack's new RLD-1 which both have processor loops. On the tube side, in addition to those already mentioned above, there is a little-known but fantastic preamp from PSE that rivals the best. As for stereo amps if you're looking to upgrade there too, to keep the cost down I'd look at buying one used, as amps tend to either work or they don't so I find them less risky than other components in the used market. I bought a used McCormack DNA 0.5 Rev. A for $1600 a year ago and am thrilled with it.
To sum up, I think you're still absorbing some potential risk and sound quality degradation with a preamp/processor, so for me the stereo preamp is the best-sounding, safest way to go for now. Best of luck.
Tim