First Hand Experience?

Another priority for me is sound stage and separation of instruments. I get that to some degree with the Yamaha integrate with a good FLAC or DSD file. But not nearly to the point where I can picture the instruments in their respective locations. Some of this my be due to the speakers but I believe separate amp/pre amp will help this a lot. Thoughts anyone?

Aside from the speaker impedance you need to consider the input/output impedances of the pre an power amps

Understood. Is impedance matching more important with a tube pre & ss power amp combination?
I read a rule of thumb might be about a 10:1 to about a 100:1 ratio, power amp input impedance to preamp output impedance.
Again, does this hold true for both tube & solid state? Don't want to hurt the speakers!

Hi wcc10...
I went through a similar glide path in gear mixology over the past few years. I looked at the Rotel line and in listening to various Rotel gear I appreciated the fit/finish/sheer heft of the gear, but I was never sold on the sound. I’ve run through a range of gear at home, and I have to agree with the voices speaking up in favor of Parasound in your general price range. To me, it is a great bargain overall. Looks great, and sounds excellent — very quiet (black) with proper power (I am a PS Audio Powerplant fanboy, works great).

Are you familiar with the Parasound z-line of gear? It lends itself very well to a component upgrade path, and I swear this stuff is bang for the dollar. It loves every reasonable upgrade you throw at it in terms of power quality, ICs, speaker cables,... I have NOT (but now that I think of it, I will!) used my Parasound home office z-stack to drive my Avalon Acoustics speakers so I really can not tell you how well the amps hold up to outstanding and large speakers.

Sure the z-line is low on output watts, but your speakers will probably fit well. If there isn’t enough power then you can inexpensively add a second zAmp for each channel (it’s setup to enable that on the back). The z-line really sounds excellent at your price point — PLUS: you can easily recycle (into a second small system) this gear as you upgrade... I have to say, it sounds great with a proper phono stage and good TT setup. I have driven all manner of small to mid-sized speakers (Mourdant-Short, Energy, Martin Logan, ...) with it to great success. This gear is a scaled-down and minimalist-feature version of bigger Parasound gear. ...And, you can frequently get the amp or preamp on special deals online.

I have not seen the Parasound z-line on the Audiogon listings. But I would strongly suggest punching above your retail price by looking for either a good deal on some Parasound or other gear on Audiogon. Speaking of which, I recall paying a nice price (somewhere around $1400) for a Cronus Magnum integrated tube amp that resolves and images really nicely for that relatively low cost. It does NOT have a black background, however. But it’s an analogous situation with vinyl: If you are taken by the overall vinyl sound, you will overlook the surface noise issues. The Rogue is bang. ...But it’s not as clean as other much more expensive tube gear (I ended up with Ayon).

Hi vicwest.
Yes it seems I am being driven in the Parasound direction! I have given the z-line a cursory look but will give it a more thorough examination. I was looking at the Halo line which looks impressive and the Halo 23 is well within my price point for sure. At 125 watts per it is probably ample for my current needs. My only thought is, will it suffice with a view towards future upgrades? You have addressed that question in your response from your own experiences. I appreciate that.
My current speakers (B&W) I believe do not work too well with tube power amps. I can't say that from personal experience but from input here on Audiogon and by at least one tube amp retailer. So for the moment I'm limited to solid state although the Jolida line interests me especially for it's pricing.
As you may have read on this forum, I will use whatever I end up with for 2 channel audio only. I do not have much need for in home theater, but I do want to get as much as I can out of my music system as dictated by what I have to spend. As it is that more than one person has responded with suggestions to look at Parasound I have to consider that line seriously. I do not mind spending all that I can on one item within my audio system and building from there. And as it stands now, I consider myself starting from scratch and will add & build as I can. One question; are you using a Parasound SS pre-amp in your system? Have you tried a tube pre-amp with any success?
Thanks to you and all of those who have answered my questions.