Weird Setup - Will it Work?

I am helping a friend buy a new stereo, and she wants it to control speakers in two room (living room and kitchen). She also wants a tuner. I am steering her toward a Portal Panache amp, and originally thought she could use her old NAD receiver for the tuner. Now that I know she wants two sets of speakers, and that both speakers should be able to play the tuner and the CD player, I thought of this setup, but am wondering whether it would be potentially dangerous as it could set up a feedback loop between amplifiers. Here it is:

- Tape out from NAD receiver goes to Panache input #1
- CDP goes to Panache input #2
- Tape out from Panache goes to NAD input #1

When she wants to play the tuner, she simply switches her NAD to FM and her Panache to input #1. When she wants to play a CD she simply switches her Panache to input #2 and her NAD to input #1. The potential problem arises if she has the both the Panache and the NAD switched to input #1 at the same time. In this case, the Panache is "hearing" and outputting the NAD, and the NAD is "hearing" and outputtng the Panache. That makes a loop. Are preamplifiers any more immune to the potential feedback problem that could ensue?

The way around this would be to buy a CDP with two outputs, such as a Jolida. But I'm trying to save her money and get a less expensive CDP (e.g. Cambridge Audio 500SE, which I think is quite good sounding in its price range). So, I'd like to stick with the first approach. OR - any other ideas? If not, I'll be asking for recommended integrateds or receivers with two switchable speaker outputs!

Use a set of Y cables on the CD player.
You are quite right to hesitate over the setup you describe. The user interface is not only confusing, it is potentially destructive of the system! If I were in your shoes I would do whatever it took to make the loop condition impossible.

I suspect your user has a preference for convenience over sound quality, given the budget limit. She might possibly feel better with the twin speaker ouput receiver/integrated solution you envisage as a last possibility.

However there is another possible configuration, using NAD, Panache, CDP and 2 sets of speakers. In one room, set up the NAD system with the CDP connected to it. Set up the Panache and speakers in the next room. Run a long, well-shielded coax interconnect from the NAD's tape outputs to any input on the Panache. She need only turn the Panache on (and adjust volume) to hear music in the second room. All source selection would be done on the NAD.

With this solution, it is a tiny bit of a shame that whatever signal gets to the better amp (the Panache) will have been filtered through the NAD's circuitry, but at least money has been well spent on the Panache, and perhaps future upgrades will eliminate the bottleneck at the NAD.
Don't confuse her and make a mess.
Buy her a denon 385 receiver. 3 zone receiver with a/b speaker outs. It will sound better than the nad and be simple to use.
Peter - why not get her a 3-way speaker switch box like I have from Bryston (or a cheaper version from Niles). Sell the NAD and pick up a decent tuner.

Easy to see what you are trying to do. There are a number of ways. Kill that feedback idea. She has to be at the tunor and other unit to control station, and volume. So put a speaker selector there and you go NAD tape out to P#1 and Cd in p#2. Vol and speaker selector on the P unit.
Elevick's is the best solution. Do the 'complex' set up of the receiver for her, show her how to use it and let it go. Most people are not audiophiles or tinkerers. Give her the convenience she wants and she will be happy!
Sell the Nad and buy a good vintage tuner. A speaker switch box from Radio Shack will serve her well. The Portal Panache integrated is a good choice and has good current delivery even into low impedances you may run into with two sets of speakers.
I spoke to Joe Abrams (Portal) and he confirmed that the Panache can easily drive 2 sets of speakers with the way it handles low impedence. She could put a Radio shack volume control in line to the kitchen speakers, keep it out of the Living Room speakers. That's reasonably flexible I'd say! Thanks all.
Elevick has the best idea, and she'll have a handy remote control.