I just looked on the AV123 site and it looks like they have stoped selling the Emotiva line.
Does anybody know the reason?

My impression was that AV123 wanted to refocus their business. Emotiva now has their own website:

http://www.emotiva.com/

The Emotiva line has been difficult for AV123 (particularly the UL's, which had a bumpy launch), and AV123 apparently felt that they needed to pay more attention to their speaker products.

I have been looking at the 990 -vrs- the DMC-1 also. I here the mention that the DMC-1 is so much higher price. The DMC-1 with the MSP-1 seems to be pretty much the same price as the 990 with the 7700.

It is a very hard choice, don't know what to do.

The DMC-1 is more expensive than the 990 and has a few fewer features (less robust bass management, for example). Emotiva is now offering an outboard HDMI switcher that is similar to the 990's onboard DVI, although one thing I love about the 990's DVI switching is the ability to assign the DVI ports to any video input. In theory, you could have a device like the PS3 (HDMI and optical digital outputs) connected to the 990 and use Video5 (the front input) for it since both the DVI and the digital audio inputs are assignable. That can give you a bit more flexibility in setup. On the other hand, that bit of flexibility may not be needed by everyone...

There's also the fact that Emotiva support is somewhat in flux: AV123 brought the line to market almost as if it were an internal brand (which it never really was, although many people had that impression), but they have now broken that tie and Emotiva is on their own to handle customer support and sales. They may end up being very successful in that regard, but at this point there's not a proven track record to back them up whereas Outlaw's been online and in business since 1999.