I want to change from 2 channel to HT but what....

As you said in your post, "I do belive a receiver can sound as good as separates." This makes logical sense why you'd go the Arcam route.
While I have no doubt the Arcam makes good sound for a receiver, and I used to sell that line, it can't compete with separates...good separates that is.
Do yourself a great favor sometime, and add an outboard amp the the receiver, and use the ARcam as a pre/pro. YOu'll be amazed how much better the sound quality is from even a lowely parasound 5 channel amp, and similar!!! The amp's in those receivers really can't hold a candle to a dedicated amp. It's always been that way...not to mention a good pre/pro's preamp section is better as well, especially dynamically.
For the record, and I've sold some good sounding receivers over the years including the original model 100 Arcam, I'd NEVER spend $2k on ANY RECEIVER, EVER! I've worked in this business to long to know better. The sound is just not there for that money. A used $1200-1500 pre/pro and $600-1000 multi channel amp punishes any receiver ever made from my experiences. But, it's fun finding out this stuff, I"ll conceed that.

Thank you Flrnlamb. That is the exact route I am planning to take. The AVM200 used is asking $1700.00 currently on this site. I am getting a new Arcam AVR300 for $1625.00 including shipping. From what I have read, the AVR300 has an exceptional pre-pro. If the 100wpc AVR300 integrated amp isn't enough then I will purchase a separate multi channel power amp to use with the AVR300's pre-outs.

Flrnlamb, I'm no techie, and I respect your experience and knowledge. I come from the high end audio world and up until last winter I would have totally agreed with you about seperates. I generally still do.

But have you actually HEARD the AVR300?

I'm tellin' ya, after auditioning it, the AVR300 is a different animal from your typical HT receiver. It's by far the best HTR I've heard and it really does approach the performance of separates IMHO. It's a whole 'nother league better than the AVR200 and in a completely different universe from the AVR100.

I thought the pre-pro section of the 300 was a real honey, worth the price for that alone. I don't know precisely how Arcam separated the power supplies, isolated noise or what other voodoo they worked, but the amps in the 300 are much better sounding than the 200. Unless you have thirsty, current hogging speakers, I think the AVR300 sounds much better than any other solution I've heard near its street price ($1600-1700) - and that includes the medium priced separates I auditioned (Rotel, B&K, Parasound, and Anthem).

I found the AVR 300 to be very spacious, resolving and dynamic with reasonable speakers, and this is from someone who usually hates music through receivers of any sort. (I'm used to listening to music through full range Alons Vs with 6K mono amps and a 4K preamp). No hardness, no glare, no congestion. In fact, the 300 has an ease and openness that's very appealing.

Music reproduction is where the Arcam outshines other HT receivers and modest separates. The AVR300 doesn't come close to beating my 2 channel system electronics, but my gear cost six times as much - it should sound better! Yet music is very enjoyable through the Arcam - you don't think about what you're missing while listening through it.

IMO the AVR300 is an excellent solution for music lovers getting into HT and HT fans who also want good sound for music. It offers genuine value for the money. They can always use the 300 as a pre/pro and add an outboard multichannel amp as their systems grow. A lot will depend on their speaker demands and room size.

Does the AVR300 surpass the top of the line Lexicons, Krells, Carys, et al? No, but it costs thousands less and for many people, this is as much amp and pre-pro as they'll ever need.

Rackon, thank you for the insight! I very much have NOT heard the AVM300. So, yes it's likely I'm off base here. This has just been my experiences over and over again. The AVM300 may indeed be "all that", and "separates-like" in performance. I think I shall look into this "thing" a bit further.
I appologize to the Arcam receiver if I offended it, or sold it short. I must give it a try to see what it can do. Let the auditioning begin. (and I really do hope it works up to it's hype. I may then recommend it thereafter as a subsitute at the price point)

LOL, Flrnlamb, I don't think Meridian, Lexicon or BAT are shaking in their boots or anything, nor are the boys in Cambridge UK offended (they're too busy taking this one to the bank).

For demanding speakers or SOTA HT you still need separates. But for average folks in average sized rooms the AVR300 does a great job at a very good price point. I'll be interested to hear your thoughts on it.

BTW, Stereo, the AVR300 sounds better with an after market power cord. I used a TG Audio SLVR - I think the dealer was using Audience cors (not sure about that). Give the Arcam some break-in time too.