I want to change from 2 channel to HT but what....


I have a very good Karan KAi180 integrated amp, a diy cd player and Merlin VSM-m speakers. I would like to sell the Karan and purchase a used or new HT receiver or separates. I want to spend around $2500.00 (the used price of my Karan). I am looking at, in this order, B&K 507, Sunfire receiver or separates like the Lexicon MC-1 with a good amp. I have also read some good info on Yamaha, Denon and a new Samsung digital receiver. I have also read that Sony has a digital amp in a receiver as well. The Samsung is out of my price. My plans for the near future is to buy a new Panasonic 50" plasma. I would like the hdmi switching, 7.1 and THX Ultra. I don't think the B&K 507 or the Sunfire has these. I am not realy keen on Sony, Yamaha, Denon, Onkyo or Samsung etc. receivers for the only reason that I would not buy one for a 2 channel set-up, but I am willing to consider everything. I do want at least 170wpc, THX Ultra, DTS, DD, 7.1 and a good video switch hopefully with HDMI. I do believe a good receiver can sound as good as separates. Mybe not in my $2500.00 price range. My Karan integrated was an upgrade from $7500 Melos separates.
stereo
Thank you Flrnlamb. That is the exact route I am planning to take. The AVM200 used is asking $1700.00 currently on this site. I am getting a new Arcam AVR300 for $1625.00 including shipping. From what I have read, the AVR300 has an exceptional pre-pro. If the 100wpc AVR300 integrated amp isn't enough then I will purchase a separate multi channel power amp to use with the AVR300's pre-outs.
Flrnlamb, I'm no techie, and I respect your experience and knowledge. I come from the high end audio world and up until last winter I would have totally agreed with you about seperates. I generally still do.

But have you actually HEARD the AVR300?

I'm tellin' ya, after auditioning it, the AVR300 is a different animal from your typical HT receiver. It's by far the best HTR I've heard and it really does approach the performance of separates IMHO. It's a whole 'nother league better than the AVR200 and in a completely different universe from the AVR100.

I thought the pre-pro section of the 300 was a real honey, worth the price for that alone. I don't know precisely how Arcam separated the power supplies, isolated noise or what other voodoo they worked, but the amps in the 300 are much better sounding than the 200. Unless you have thirsty, current hogging speakers, I think the AVR300 sounds much better than any other solution I've heard near its street price ($1600-1700) - and that includes the medium priced separates I auditioned (Rotel, B&K, Parasound, and Anthem).

I found the AVR 300 to be very spacious, resolving and dynamic with reasonable speakers, and this is from someone who usually hates music through receivers of any sort. (I'm used to listening to music through full range Alons Vs with 6K mono amps and a 4K preamp). No hardness, no glare, no congestion. In fact, the 300 has an ease and openness that's very appealing.

Music reproduction is where the Arcam outshines other HT receivers and modest separates. The AVR300 doesn't come close to beating my 2 channel system electronics, but my gear cost six times as much - it should sound better! Yet music is very enjoyable through the Arcam - you don't think about what you're missing while listening through it.

IMO the AVR300 is an excellent solution for music lovers getting into HT and HT fans who also want good sound for music. It offers genuine value for the money. They can always use the 300 as a pre/pro and add an outboard multichannel amp as their systems grow. A lot will depend on their speaker demands and room size.

Does the AVR300 surpass the top of the line Lexicons, Krells, Carys, et al? No, but it costs thousands less and for many people, this is as much amp and pre-pro as they'll ever need.
Rackon, thank you for the insight! I very much have NOT heard the AVM300. So, yes it's likely I'm off base here. This has just been my experiences over and over again. The AVM300 may indeed be "all that", and "separates-like" in performance. I think I shall look into this "thing" a bit further.
I appologize to the Arcam receiver if I offended it, or sold it short. I must give it a try to see what it can do. Let the auditioning begin. (and I really do hope it works up to it's hype. I may then recommend it thereafter as a subsitute at the price point)
LOL, Flrnlamb, I don't think Meridian, Lexicon or BAT are shaking in their boots or anything, nor are the boys in Cambridge UK offended (they're too busy taking this one to the bank).

For demanding speakers or SOTA HT you still need separates. But for average folks in average sized rooms the AVR300 does a great job at a very good price point. I'll be interested to hear your thoughts on it.

BTW, Stereo, the AVR300 sounds better with an after market power cord. I used a TG Audio SLVR - I think the dealer was using Audience cors (not sure about that). Give the Arcam some break-in time too.
Thanks for the power cord info Rackon. It's a great receiver! I would like to bi-amp my Merlins, but don't want to spend $250.00 for another pair of cables.