Krell HTS 7.1 vs Denon AVR-X4300H


Trying to build a home theater system which can double as audiophile stereo, either 2 channel or 5 channel. 
Sound is more important for me than picture. 

ordered epson 5040ube
already got krell KAV500 amp
just placed an order for oppo 205 blue ray
have rel S5 sub
considering vienna acoustics 4 ohm speakers, mozart for front and haydn for rears, with center maestro

Need a home theater processor. Have a good offer on Krell HTS 7.1. (1000$) vs. Denon avr x4300h
What would be better for my setup. What are pros and cons of either preamp? I would use the devon as preamp for sound only as it doesn't have anything modern in terms of video. As I mentioned, music is very important to me. What would be a logical choice here? Any other suggestions for preamp and spearers are welcome, I'm new to this home theater stuff. Also, Dolby atoms is not important to me, my amp only has 5 channels, unless i can use denons amp in addition to my krell amp to add more speakers, not sure if this is possible. 

My current 2 channel audio system is Mcintosh ma6600 with mcd550 and vienna acoustics mozart, and I love the sound. 
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I have an Oppo 105 connected to a Krell HTS 7.1 plus Krell TAS in my HT system. 5.1 audio processing is done in the Oppo, consequently the Krell HTS 7.1 is just being used as a glorified volume control. I use the same system for regular 2C stereo; CD, SACD and computer audio. All I can say is the sound to me is excellent for HT and 2C stereo. In fact, regular cinema sound, and video, is noticeably far inferior to my own HT system. Don’t know if I am being delusional here, I just much prefer watching Blu-Ray movies at home versus a good cinema. Overall, I am very happy with the Krell HTS 7.1, owned it for over 10 years now and have no plans to change it for something "better". No idea how it compares with the Denon AVR-X4300H; I doubt there would be much difference in sound quality.

The MX119 and MX132 are likely going to have similar characteristics to your 2-channel McIntosh system. Mac is typically warm, smooth and laid back sound. Krell is more forward with attack and clarity. Personally, I would go the Krell route if you were putting together a home theater, unless you are after the McIntosh asthetics and sound character.

The MX119 and MX132 are very old. Yes, you can use them as pure analog preamps, but they are only single ended internally. If you are after a pure analog preamp, look into the Parasound P7. It is a much newer device, fully balanced internally, and is only a 7-channel pure analog preamp. There is no digital processing or video capability. It is likely going to have better resolution than either the McIntosh or Krell devices you are currently looking at. If you want to know more about the McIntosh stuff, go over to the audioaficionado.org forum. There’s a McIntosh subforum with a large following. You could post questions there.

However, I will say that there is a "magic" in the Krell Class-A circuits that started with the HTS 7.1 generation which adds something to the sound (the core sound from the Oppo doesn’t have this magic character). The older KRC3 doesn’t have this "magic" character (though I don’t know what would happen if you re-capped / upgraded the KRC3). The soft input stage of the HTS 7.1 will give it somewhat of a laid back sound, but it will keep the clarity and magic of the Krell output stage.

"Exactly the answer I was looking for. Thank you."

I agree with that as well, with the exception of trying both preamps. I never had the 2 Krells side by side, so I just can't say.

The HTS7.1 is a very nice 2-channel preamp that also has HT capabilities. I actually think it shines more as a 2ch... Although, not to add another wrinkle, but I replaced it with a Marantz AV8801 and quite frankly preferred that to the Krell. Alway been using Krell amps, so the HTS7.1 was a natural choice. I was seriously considering replacing the AV8801 with the newer 8802, but after listening to it, I preferred (and kept) the 8801.

I've separated my stereo from my HT since and combined with a move, the 8801 is now overkill in my small 4 person HT...