Opinions needed; which is a better choice and why?

Todays integrateds are so good I think that is the way to go.
Something like a Creek or a Rogue.

Put your money into speakers that match your room and a good source.

As Jadem6 says, dollar for dollar you'll get more from an integrated than separates. A major virtue of separates, however, is flexibility, especially at upgrade time. For example, should you ever want to get into multichannel, with a power amp you've already got 2 channels of amplification. Of course, if your integrated is externally coupled, that also buys upgrade flexibility.

Sony DVP 9000es $829 new less used or
Rotel RCD 971 $700 new $400 used with maybe a
Bel Canto Dac 1 or 1.1 used for @ $500 or
Perpetual 3A dac used for $600
Audio Refinement Complete $950 new $650 used or better
Creek 5350 SE $1495 new $950 used
Meadowlark Audio Kestrel Speakers $1395 new $850 used
with entry level DH labs or Harmonic Technology Cables $300

Total Price from $2150 to $4019

You can be very happy with any combination here for a very long time. Superb soundstage. Smooth highend with good midrange and respectable bass. ie Musical !

RE Chel's suggestions,
I second the Bel Canto DAC 1
For interconnects, speaker cables and PC I would get the Audition package from Virtual Dynamics. If you can swing it, the Rogue Magnum Tempest Integrated (which both Chel and I own) will do very well in your new system.
If I knew about Audiogon when I started this hobby I would've saved so much $$$ by asking this same question in the forums!!! Use all this information Meby, and remember: the fun of this hobby is in the chase... Buying, tweaking, listening, selling and more buying.. Good times!

I just bought a YBA Passion Integrated amp ($4,000US). A few months ago, Before buying this unit, I was looking into buying a YBA 2 AMP and preamp (around $6,000US). The integrated amp is a brand new model (it was released in December 01). Eventough the integrated is cheaper than the separates, it is BETTER sounding that the Series 2 seperates. If an integrated is well designed and well built, it can be as rewarding as separates without the extra cost. Remember that when you buy separates, you buy 2 transformers, 2 chasis... Also, you will have to buy an extra set of interconnects (beleive me it can be very costly task to find the right one). On the other hand, you have more flexibility when buying separates.

If you are on a tight budget and want the most bang for the buck and you are looking for new components, I would look into integrated. If you don't mind buying used, there are a whole lot more separates for sale on the market compared to integrated amps. The only reason why I bought a brand new unit is because the integrated I bought is a brand new model (I beleive it will take quite a while before seing this unit on the used market).

one more thing... When you buy online, you have no chance to audition the gear before you buy. If you plan on buying separates, make sure the amp/preamp are a good match. Buying without auditionning can be sometimes very deceiving. I would go around stores to listen to some gear. Make a choice on what sounds good to YOUR ears (not the salesman's ears). Once you choice is down to a few units, shop online for ONLY the units YOU auditionned. Remember, BE PATIENT when buying online. A good deal will come around sooner or later. The only way you will not be deceived is to ONLY trust your ears. Component reviews and other people's opinion are only there as guidelines. They are not to be taken as the ultimate reference.

One more thing, if you like tubes, YBA sound very close to tubes (but with solid state advantages).

Happy shopping.