Advice on AV Receiver versus Separates


Starting from scratch here guys on my first Home Theater. Any advice would be appreciated.

I picked up a Marantz AV7005 pre-amp receiver from Best Buy for $705 (open box). I can also probably pick up the MM7055 for about $800.

Is this combo a good option for a 5.1 setup?

Should I rather go for a receiver instead?

I have heard great things about the AV7005, but not as much about the MM7055. Are there other separate combinations I should be considering?

I would like to spend around $1.5k for the receiver / amp&preamp so I have enough left over for speakers, etc.

Thank you.
aman4kr4
One further note on bi amping. IMHO:

Bi amping has benefits. Without doubt, it certainly has theoretical benefits - an active x-over ahead of the power amps will generally produce better distortion and phase performance. Further, offloading deep bass to a subwoofer will likely increase any system's max clean SPL capability, but....

You're already bi amping this system when you add subwoofers. By bi amping the mains, you're effectively tri amping the system. While there may well be additional benefits to this approach, I'd agree that this is a low return on incremental spending.
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Those theater amps you are considering from Marantz are not among their better amps. Any amp that can't handle 4 ohm speakers is no better than the amps in a mid level receiver, although the 8003 has better specs. I'd suggest amps from companies such as Outlaw Audio(model7500), or Parasound.
Per Bob,

I assumed the OP would use the bass management in his pre-pro, so he will almost surely get the benefits of bi-amping there. (No REL style, high level crossover set-up to argue about in this case).

My comment re: low return on incremental spending was reflective of the OP's stated intention to add a second power amp to his system to "bi-amp" the main speakers. In all likelihood, that would fail to achieve most of the benefits provided by bi-amping, anyway, since the crossover remains in the wrong place. As to the superior cost benefit tradeoff for the proper biamp arrangement in most powered speakers, I'd defer to those who know the market better. That includes lots of folks out there; Bob among them, for sure.

Marty
My sn was randomly generated by Audiogon. My name, Aman, plus some random letters/numbers. Not so random after all.

To be clear, this will be my main setup in a tri-level condo with walls that I technically don't share with my neighbors, as there is a 1 inch gap, but for all intensive purposes, I should just assume that noise will permeate through them quite easily. The room is rectangular and deep enough to warrant a good setup, but I really don't have room for 2 subs.

I could get a better amp later, I had a parasound before. But for now, I don't mind going with a good enough amp/pre setup as I have to still buy the rest of the setup, including center, surrounds, interconnects, power conditioner, etc etc.

I would like to read the white papers you mentioned. IMD is definitely a concern that would be more pronounced in the 8 channel amp vs the 5 channel. I also have never purchased active speakers. I prefer vienna acoustics Beethoven or b&w nautilus speakers. I also hate that humming noise that systems often generate and I feel my not having active speakers, I get rid of additional culprits that would cause that irratable hum.

Btw, you guys are immensely more knowledgable about all this than I. So I appreciate the information and am enjoying learning from you.

Aman