I drove a set of Bose Acoustimass 7's and Model 100's with my Model 1050 for six months or more without damaging them, for what that's worth. Do you have any information on the "power ratings" for the Kenwood speakers? Something like "max power input"? I poked around Kenwood's site some, and couldn't find much in the way of speaker specs for the Home Theater in a Box systems. I did look at some of the speakers that appear to be either similar to or the same as the ones used in most of the HTiaB setups, and they were rated for 60W max (sort of funny since the receivers in the HTiaB sets were typically listed as 100Wx5). If this is accurate, you are probably safe with the 1050 (just don't watch the pod race scene from Phantom Menace at absolute full volume!).

Hope that helps.