confused and don't know what to do

+1 to audiotroy and mtrot approach. I used to use a receiver as preamp but upgraded to dac/preamp. Remember that any DAC used in this way will have to have analog inputs. It does complicate the system use and remote control, esp with a music server, but I LOVE my combined 2ch/HT system now! We really need some idea of budget to give better recommendations on gear. I use Anthem MRX-1120 for all other channels, and Bel canto DAC3.5mk2 with Mark Levinson ML-532h amp for 2ch. The system kicks. The new Bel Canto Black EX DAC-pre looks really nice if you can afford it.

If your room is large, I highly recommend multiple subs (a swarm), even if you won't play them loud. I suffered for 20 years with what I would call a hollow bass sound, and adding a 3rd sub on the far side of the room solved that. It's like magic, and believe me, I tried just about everything else.

I also finally got acoustic treatments, and they were the icing on the cake. In your room, these will be absolutely essential. Keep in mind that if you go with receiver for surround only, it will not be able to correct for your 2ch, and this is actually a good thing. Also, no amount of room correction can compensate for a room with many reflective surfaces. I recommend GIK acoustics as very helpful in overall design with many options and good price/$.

I wouldn't skimp too much on cables, but I would save really expensive ones until the end. I'm a firm believer in ALL cables affecting the sound. Best of luck, and come back with more information as your system progresses.

raw33,

Forgot to mention not all speakers you like might not have a compatible center channel. Keep in mind your center is everything to a good home theatre. Another suggestion is to read up on tweeter material and how they influence sound, this is very important. Also, electronics such as amps do influence the sound from your speakers no matter what others say, since I did experience this.

i would suggest that you do separates   get a good AV pre/pro (many recommendations above), Then get a high quality tube preamp with cinema bypass (Cary or many others) SS monoblocks for your L, R, and Center, then get lesser models of same manufacturer stereo or multi channel power amp for  surrounds (depending on yuor desired theatre set-up),  you get the best of both worlds

A few people have mentioned a good starting point being an Anthem AVR.  I am just getting ready to put my MRX710 up for sale as I very rarely do the movie thing in 5 or 7.1.  I've decided to drift back to tubes for 2.0 music only.  I've nevervhadcan issue with it and it has plenty of juice for both music and movies.
If interested let me know.  The queen is telling me it's time to start selling off all the stuff I've stopped using.

raw33, as you said music is your priority. With a good system you do not need all that surround sound stuff. Just stick the biggest TV you can between your 804s, Get two subwoofers, an amplifier with at least 200 watts/channel with it's matching preamp(Anthem is a great value) and a Top Blu Ray player like the Mcintosh MVP 901. Call it a day unless you want to do vinyl. You don't even need a streamer as the MVP 901 will do it for you.