any comments on the rotel 1066 surround processor?

yes, the Classe will not have the newer features, if this are things you need. The Classe won't have 7.1, Dolby Pro Logic II, 24/96 or 192 DAC's, etc.
Although, if you use only 5.1 or 2 ch, do your processing of higher order digital formats(SACD/DVDA) and such in the players themselves, and need high quality PURE DIRRECT ANALOG INPUTS for sources like tuner,DSS,tv,tape,vcr,tuner, whatever, then the Classe's sonics will be unbeaten for the money you can find one for used!
The Classe also has THX and balance out's for it's amp-out's!
Inshort, if you only need 5.1 or 2ch sonic purity,can do without the 24/192(although the Classe's 20 bit dacs are outstanding for CD's and DVD's, etc!), need better DIRRECT analog inputs(making a DVDA/SACD connection unbeatable in a pre/pro), plus some extra audiophile grade features thrown in, then you'll flip for the Classe! On the other hand, if you have different priorities(for me sonics are most important), you should continue to check out options, or the Rotel may be all you need.
I just think you can get the same features and sound that the Rotel will give you in your bassic "RECEIVER'S" pre/pro section!...and for less money!

I also have a small room, but when I expanded from 5.1 to 7.1 channels I found it to be a significant improvement. IMHO, 7.1 is so much better that I would never go back to 5.1. The sound is more enveloping, surround effects have more front-to-back and side-to-side depth, I feel like I'm in a larger room, and I do not hear any DSP artifacts. The challenge is synthesizing the extra channels. I use Lexicon's Logic 7.
Bruce

I'M BUILDING A NEW HOUSE WHICH WILL BE DONE IN 10MONTHS. I WILL HAVE A NICE ROOM (18X25) TO USE AS MY THEATER/FAMILY ROOM. I'M NOT PREPARED TO DEDICATE A GREAT ROOM OF THIS SIZE TO DEDICATED THEATER. I'M LOOKING AT SOMETHING LIKE THE SONY WEGA 65" DLP. I'M HOPING BY THEN THE PRICES CONTINUE TO FALL AND THE QUALITY CONTINUES TO RISE. THIS WILL GIVE ME PLENTY OF TIME TO LISTEN TO 7.1 VS 5.1. I'LL ALSO CHECK OUT CLASSE' . I CAN TELL THAT FOREVER HIFI IS PASSIONATE ABOUT IT. I APPRECAITE ALL OF YOUR COMMENTS AND I'LL LET YOU KNOW HOW THE ROTEL WORKS FOR NOW. PS. I DO PLAN ON SETTING UP A NEW PIONEER ELITE MODEL 45A TO TRY DVDA AND SACD. THIS MAY INFLUENCE MY DECISION LATER ON WHEN I DO MY REAL SYSTEM!

There's a great article/review in the new issue of Stereo Guide to Home Theater. It compares it to earlier Rotel Pre- Pros and the Anthem AVM 20. They gave it a great recommendation, and even made it their pre pro choice for 2002.

I HAD THE ROTEL INSTALLED LAST NIGHT. OVERALL THE SONICS SOUND GOOD. IT DOESN'T HAVE THE DSP FLEXIBILTY AS THE OLD YAMAHA DID, BUT IN DOLBY DIGITAL STRAIGHT IT SOUNDS VERY CLEAN AND NATURAL. THE REMOTE TOOK 3 HOURS TO PROGRAM AND IT'S STILL DIFFICULT TO USE. SOMEDAY I'M GOING TO INVENT AN EASY TO USE REMOTE THAT IS EASY TO PROGRAM AND EASY TO USE. I'LL BE A RICH MAN WHEN I DO.
THE OTHER THING I FIND INTERESTING IS THAT THE BOX HAD A BIG "MADE IN CHINA" LABEL ON IT. I'M VERY CONCERNED ABOUT STUFF MADE THERE. I'M IN THE ELECTRONICS BUSINESS MYSELF AND WE ARE SEEING A LOT OF COUNTERFEIT PARTS BEING USED AND THE QUALITY IS SHABBY. I BUY STUFF FROM COMPANIES LIKE ROTEL FOR QUALITY. WE'LL SEE HOW IT GOES.