suggestion for a multi channel pre/amp please

I agree with Elewick's advice to go for separates rather than a receiver (although I know of fairly discriminating stereo/HT people who like their Pioneer Elite receivers just fine), and that you might be able to find Anthem or Rotel units that you would like very well. For musicality, though, I would say the Audio Refinement units will be exceedingly difficult to beat at anywhere near their prices. Finally, let me apologize to all readers, and especially to Mr. Rubinson, for getting Kal Rubinson's name wrong in my first posting.

Consider the Audio Refinement Pre-5 (5.1-channel pre-amp, for two front/main, one center, and two rear channels + subwoofer) and Audio Refinement Multi-5 (5-channel power amp, 125 wpc). Used units from Audiogon would get close to your budget. Audio Refinement is YBA's "budget" line, and these pieces produce really excellent sound for either stereo or multi-channel/home theater listening. With a good "universal" player (able to play CD and DVD-audio & -video), you'd be in business, without needing to get a separate processor. A bunch of manufacturers (Denon, Pioneer, Pioneer Elite, Esoteric, etc., etc.) make such players. (The Exemplar Audio-modified Denon 2900 is totally amazing, but at alomst $1000 for the Denon + $2500 for the modifications, is probably more than you'd want to spend.) Note that with the Multi-5 amp you would need a powered subwoofer or a separate amp, which would receive signal from the 6th (".1") channel of the Pre-5 pre-amp. Look for reviews of the Audio Refinement Pre-5 in Stereophile (Kal Rubinstein) a couple months ago and UHF Magazine last year (?), and believe what they say! And the brand's power amps have the same standard of excellence, in my experience. You would be thrilled with the sound (depending, of course, on the quality of your loudspeakers).