Hi,
My first post here, but thought I'd add my opinion to the fray...
I had an Onkyo 838 receiver driving higher-end Cambridge Soundworks speakers (towers, center stage, S300 surround S1000 sub), with a low-end Sony DVD/CD carosel player. Thought it sounded pretty good. Wanted to move up to SACD/DVD-audio, improve the sound to get ready for a new TV (DLP or LCD rear projection probably).
Upgraded the receiver first to the 950/770 set, and the DVD player to the Onkyo SP800. Didn't try A/B testing on the receiver, but the improvement was obvious to everyone who auditioned it - sound was cleaner, less distortion, livelier, more accurate, etc. Nice soundstage, good depth. Music and movies both sounded better. Did do A/B testing on the DVD player as I have the Sony still hooked up as a sound source for my second room. Noticeable improvement even on CDs. The Outlaws have so much clean power that I can't get near max volume, and I have a "great room" (living, kitchen, dining in one room) that I need to fill with sound. And I like it loud.
So far, so good. But then I started thinking that the speakers were now the weak link, and wondering how much the outlaws were being limited by the speakers. Did some research. Decided to try out the Onix Rocket home theater #2 (750 mains, 200 center, 300 surrounds). Kept the subwoofer. Have just had them for a few days. Did A/B testing, with friends doing blind A/B testing. Very noticeable improvements again. Midrange about the same I'd say, but bass much tighter, I invented the term "less baggy". Treble is also much cleaner, clearer, dynamic.
So in my experience, yes, upgrading from a receiver to separates, at least with a distance in price, is well worth doing and can add quite an improvement in sound.
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--Peter
[This message has been edited by outlwrocketman (edited February 24, 2003).]
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--Peter