Recommendation for a New HT AVR?

Thank you everyone for your input. I've got some things to check out on my current Blu-ray player to see if I can get any more performance out of it. If not, I think I'll go the Blu-ray player upgrade path to one that has the 7.1 analog outputs. It's the least expensive option and makes the most sense given John's point about most movies are still using 5.1 after all these years.

My speakers are calibrated using the Avia disk. They are placed as good as my room architecture and my WAF (in this case it's me) will allow.

The Blu-ray player that I just got was a freebie that came with the purchase of the big-bucks TV. I think I'll sell it and use the proceeds to buy the upgraded model. This way I keep my AVR 507 (which I love) and get the use of more of my B&W speakers.

The $1K Integra AVR is a very nice piece. I'm not really picky about the movie room (my wife's domain) but I recently installed this unit and can report that -IMHO- Audyssey EQ alone justifies the price tag. As always, YMMV.

Marty

I really like my onkyo 906. I use it with a 7.1 sonus faber setup and it sounds great. No problems powering them too earbleeding levels without distorting a bit. As far as hdmi, not only is it convenient to just hook up one wire but the real reason to get it is the new surround sound formats like dolby true hd and dts hd master. The sound is like sacd compared to a cd and most of these use all of the channels in a 7.1 setup.

For the record, there are a plethora of av receivers out there that will "drive" just about any speaker, even full range! The VAST difference here - comparing an av receiver (yes, even the $5k plus ones) to even modest separates, using outboard amplification - is that the separates amp most always stomps all over any amplification in a receiver full of performance compromises! And we’re talking about dynamics differences, power delivery, and so forth - not just the ability to "drive" a speaker to minimalistic dynamic control and current reserve demand!
A good analogy, for anyone who's interested in comparing even a good AV receiver with a modest separates/power amp combo, is this: Yes, your Honda civic can accelerate (eventually) up to 120mph, just like your porche turbo. The difference is that the Porche can do it with about 5x's the snap, power, acceleration, control, and torque!
So when someone tells you their Dodge Viper does 140 mph on the top end - and you're tempted to think that the speedometer on your Ford Tempo goes up to 120 mph, and you think "big deal on spending the extra cash for performance elsewhere - THINK AGAIN! It's no contest really, in terms of appreciable performance.
I always go back to the comparisons I've done with large flagship AV receivers years ago, then compared them with using an outboard 125w/ch power amp in stead of the onboard amps in the receivers. It was absolutely zero contest in terms of performance between the receiver and the amp! The amp most ALWAYS BLOWS AWAY anything the receiver can compare with it!
Make no mistake, you buy a receiver, and you sacrifice where it counts most often, and that's bottom line performance in sound quality...if that sort of thing makes any differece to you. Fer the record...

So, Iplaynaked, if I were to consider going to separates, what would you recommend I look at? I've never really researched them.

Remember, I have B&W speakers: four 805, HTM2 for the center, two SCM for the center surrounds, and an SVS Ultra for the sub. From B&W's website: "Recommended Amplifier Power 50W - 120W into 8Ω on unclipped programme".