Harpua,

Since I haven't heard the Denon, I'm not certain how much difference you would be able to discern. I know that when I replaced my old Yamaha Pro-Logic receiver with the 1050, the sound seemed cleaner and the soundstage opened up and got deeper. Even my wife could tell the difference. I'd guess that you would have a similar experience upgrading from your present Denon.

I've had my 1050 for over a year now and still am satisfied with my decision (even though I paid $100 more than you will). If cash is tight and you really want separate components, you may want to cruise through some pawn shops occationally or monitor some of the auction and classified sites (Ebay, Audiogon, etc.)

Now about the weakest link in your system, what about those Klipsch speakers? Just kidding. Even though I now run a set of Monitors in my main listening area, I still enjoy going to the basement and hearing my old Klipsch KG's.