Moving From AVR to Amp


Relative newbie here so please excuse my lack of knowledge. I am assembling a system for HT and music (70/30 respectively). My room is 29x12, viewing/listening position is about 8-10 feet from the front speakers. I started a couple of years ago with Totem Forests, Model 1 center and Lynks rears, Velo SPL-1500R sub. in a 5.1 set up. I have been using an Onkyo TX-SR805 and a Squeezebox just to start while I gradually build my system. I recently added a media center PC built by a friend, that I use mainly for streaming movies and as a blu-ray player. I am thinking of (1) adding a separate multichannel amp (either 5 or 7 channel) and using the AVR as a pre/pro for a while, (2) getting a good stand alone DVD/CD player now, and then adding separate components in the next year or two. I am budgeting roughly $3,000-$4,000 (including interconnects) in this phase of the upgrade. Used but well cared for equipment is fine with me to maximize the value of my system. My questions, before I go listening/shopping: Is this a reasonable way to upgrade? Would I be better off selling the AVR and starting from scratch? What amps should I consider? Is it better to get a 5 channel amp for now and add a separate amp if I go to a 7.1 set up later? Sorry for the long post, but there seems to be alot of info to sort through and I am trying to learn.
theclam
Thanks for the suggestions.

Meiwan: Do you really think I won't hear a difference adding an amp but using the Onkyo as a pre/pro? Hmmm. I didn't expect that. I figured that since the processor portion would become outdated soonest and the AVR is only 2 years old, that I should focus on the amp now, make a long term investment in a good one, and then upgrade to a separate preamp and processor later. I will consider your advice.

Macdadtexas: I was considering the Oppo BDP-83SE or 93 as an all in one solution. That seems to be a favorite on avsforum too. I hadn't considered a DAC. My computer builder friend was going to set me up with a NAS and stream the music from that. Would the sound quality be much better using the Sonos and a DAC?

Ethos: While I don't intend to go to 7 channel any time soon, I figured a 7 channel amp would give me the capability to do so and in the mean time, I could bi-amp the main speakers with the extra 2 channels. I suppose that is one of my main questions - do I lok for a multichannel amp that can cover all needs or is it better to build gradually to that?
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I have the same Onkyo 805, and I think it is quite good for HT. Plenty of power (130w/ch), Odessey room equalization, THX certified, 7.1 so you can biamp. That said, I have to agree with Ckoffend. A dedicated 2 channel amp for music is going to be much better that a multichannel amp.

BT, I wouldn't worry about balanced cables unless you have runs longer than 4 feet or so. You won't hear a difference.
What is your ultimate goal? Do you want your incremental investments to improve 2-channel performance? If that is the case, you may want to keep your ONKYO and look for a good 2-channel integrated amp with a HT pass-thru feature. This allows you to use your integrated to 100% drive 2-channel and then use your ONKYO in conjunction with the integrated with multichannel. $4K will brink you a BIG step up if you head in that direction.
I am concerned about 2 channel performance. That is what sold me on the Forests and is the main reason I am looking to upgrade. For my purposes, the HT set up is satisfactory. The Forests sound good to me but not as good as when I heard them in the store (which I expected). My thought is that a 5 channel amp now would improve overall performance and then I can add a separate 2 channel amp in time, better suited to maximizing the 2 channel. I know I have to listen carefully and compare, but was thinking of something like the Parasound Halo A51 to start with and then adding a separate 2 channel in a year or so. On that note, what is the best way to audition amps. Assuming the store I bought from still has the Forest on display, should I expect them to make several amps available to audition or is that not how it is done? How do you go about auditioning amps?