surround processor?

Agree with Vinylshadow on the Classe SSP 800.  The Classe Sigma SSP, that I have, was a newer, and less expensive model when it came out. However, it also has a great DAC for 2 channel.  The SSP 800 is a better choice if you prioritize multi channel as all channels are fully balanced, while the Sigma is only fully balanced for 2 channel.

Hello killervideo.  Emotiva makes a very reasonable unit, the MC-700. It sounds great and surpasses any of the receivers with preamp outs that can be used as a front end." (Although they will give you more surround sound synthesizing options.) If you ask for a refurbed unit, you can get a discount. It has room correction capability and works very well in my main system. Enjoy!

Look into a McIntosh av processor to start and as you move up your two channel game you can add a two channel preamp and use the home theater bypass option. I use an mx 120 for av and switch over to a c2300 tube pre for two channel. Great flexibility without sacrificing sound quality. 

Somehow the language got so distorted people think Home Theater means Multichannel. This was a Jedi mind trick. Does "home" mean multi-channel? What about "theater"? So how did "home theater" come to mean dogmatically multi-channel? 

Discuss among yourselves. I already know the answer.

To follow up on MC, I have been deeply involved it the creation of world class multi channel HT where just the room was $250K ++.
Especially so, I have never considered any other than two channel.
To create an audiophile level HT indeed takes hundreds of thousands. Not to mention a LOT of complex gear. And unless there is a room within a room for proper speaker placement, there are a LOT of speakers scattered around the room and a LOT of cabling.
And even in the above mentioned HTs, the cabling and speakers are not what I consider to be SOTA, audiophile level. And even the amplification is not at that level. Personally, I am quite happy with my quality 2.1 channel system for Audio and HT.