$300 for older Rotel/Outlaw or do something else?

Sure. Quite reasonable on a tight budget. In fact, you could utilize the hirez codecs via analog to the prepro and let the br player decode/process for you. That's what I do w/ my oppo83. Just be sure the player does onboard decoding/processing. I know the panny80 does everything onboard if need be and a handful of other br players as well. You also may want to consider a prev-owned Onkyo 600 hundred or 700 series recvr that will do all the latest greatest things...and use the preouts to your amps!

Gave it some thought...Look for an Onkyo 606...hint-hint. See how you like it alone and then jack in the amps if you want/feel you need more.

"In fact, you could utilize the hirez codecs via analog to the prepro and let the br player decode/process for you."

True. I keep thinking that HDMI is needed for 1080p, but apparently later models of the RSP-1066 have the bandwidth for HD passthrough.

"See how you like it alone and then jack in the amps if you want/feel you need more."

I took a look at the Onkyo TX-SR606/607, but they only seem to have line outs for a sub or zone 2. I don't see how I can use my amps for the front, center or surround speakers. In the 2 channel world, the last time I counted on a receiver to provide adequate gusto, I was let down. Maybe I'm missing something there?

Does anyone make a low cost, modern (hdmi-equipped) surround preamplifier/processor? Would something new and low cost compete well with a 7 year old, $1500 surround pre/proc?

For my above post, I now realize that I can switch Blu-Ray up to 1080i with the Rotel, but HDMI is required for Blu-Ray output at 1080p. Component cables and the Rotel may be able to handle 1080p, as some 1080p PS3 games apparently can be sent over component cables, but the Blu-Ray spec does not permit it. Or so I've read. Since my panel is 1080p via HDMI or DVI-D, I can output directly to the panel for 1080p Blu-Ray.

The 606/607 should have 'pre-outs' not to be confused with the multi-ch in's. What are you using now? What is your goal. You have ideas but pardon me...no certain goal.direction. What do you want? A modern recv'r or prepro that cost less today than yesteryears 1500 dollar unit will most likely outperform the older. Technology was new and came at a premium. The technology as well as demand has brought prices down all the while getting better at function/versatility. You are quite limited with your budget and you will benefit by purchasing a newer recv'r rather than an older prepro.