Separates or Receiver to modernize home theater?

My home theater is getting dated. I have what was in at the turn of the millennium a top-of-the-line Sony television, picture tubes and all, and while the image technology is still better than anything on the market today for standard definition, I want high definition and a much bigger flat screen set.

So the television will soon be replaced and so too will our DVD player with an OPPO BDP-95. Now comes the harder part — which electronics will I use to connect to my 5.1 system that features a Velodyne DD-15 and Paradigm Signature speakers?

I already have Anthem separates and the Amp is fine — a MCA 50. The problem is my AVM-20, which has, until now, fit my needs and worked flawlessly. Alas, it has no HDMI inputs, and while Anthem offers an upgrade, I hear it's costly, more than double the AVM-20's current value.

So I could either replace just the AVM-20 with an up-to-date processor or replace both Anthems with a receiver, using the extra cash from selling the Anthem amp. Whatever I bought as a replacement would need XLR-balanced inputs for two-channel play since I use the system for both music and movies; for music I listen to a lot of jazz and some classical, pop and classic rock.

As for budget, while I could afford to buy just about anything, I rather not go over-the-top, especially since video technology is so quickly evolving that what one buys now may be dated before too soon (as in the Anthem AVM-20) So the ceiling would be a lot closer to $3,000 or even $2,000 than to $5,000 and up. I'd be open to new or used.

What would you recommend and why? What features should I consider s must-haves or nice-haves?

Thanks all for the help.

- Jon