Which is better: separates or receiver?

I have separates. Over the past 5-7 years, I've upgraded my stereo system to about a $8,000 HT system.

A couple of years ago, I wanted to move to a Dolby digital system. I went to Circuit City and told them I wanted to buy their best AV Receiver. They sold me a $1,100 Kenwood. I hooked it up at home, and within 10 seconds of this first cut, Fleetwood Mac DVD, I knew it did not have the dynamics or frequency response of my separates. I listened to a CD, but the product went back a couple days later. I later bought the Rotel 985 ($2,000 list) for $1700. I've been pleased. I've seen it selling for around $1,100 used.

There may be some $2,000 receivers that are worth considering, like the Yamaha and B&K.

Things are changing in this industry very rapidly. There are a couple features I would consider important with anything I would buy today.

1. Does the receiver/pre-pro have 5.1 audio inputs for the next generation DVD-players? The Rotel 985 does. The Sony 9000 does not.

2. Does the receiver/pre-pro have component video switching? Video from cable or DVD's is transferred using either composite video, S-video, or Component video. Component video is the best and most good TVs now sold have all 3 type of inputs. My Rotel does not have this. If you buy a progressive scan DVD, you will want component switching. If you do not have it, you will need to directly connect your DVD player to the TV and use the TV as your video switcher.

3. As for DVD player, either buy a $250 unit or a $1,000+ unit. I decided to upgrade my Sony 300 (probably equal to $200 units today). I could not see/hear any improvements with $500/600 players. I even brought two home. I then bought the Sony 9000ES for $1300. The audio sound from CDs and DVD's were vastly superior to the Sony 300 (or the JVC723GD that I had home at the time.) The video was superior as well. There's other $1,000+ DVD players that are similar to the Sony in sound/video quality.

I would look at separates, B&K ref 20 and matching 5 channel amp or Lexicon DC-1 upgraded, and sometype of good solid 5 chaneel amp, B&K, Rotel, Bryston(if you can afford one), The key is performance for the dollar with a possiblilty for upgrades. I have a B&K and like it, has 2 channels so it plays music very well. And with some of the prices on the Ref20 $1000-$1400 you cannot beat it.

Slingshot, your points are well taken, but please answer the following: Being that the room is the single largest determinate of sound quality, why would anyone spend large sums of money on equipment if they are going to not address room issues. Using bang for the buck as the guideline, money spent on room treatment is probably a better investment than cables.

The room treatment and the cables are all important I think we can all agree on this point. I'm just wondering what are the locations of room treatment products when you are considering five speakers and a sub? When people say room treatment are they only considering an improvement in two channel sound? Are the locations for room treatments the same for five channels and 2 two channel systems? I'm not sure but I think I'm getting confused.

The subject of room treatment is too big for this format, but let me give an overview. Low frequency standing waves need to be addressed. Speaker placement and corner bass traps are effective for this. Early speaker reflections from nearby walls, the ceiling and the floor need to be attenuated. At the same time you must be careful not to overdamp the room. These points apply to 2 channel as well as HT systems. The Stereophile Guide to HT has a series of excellent articles that go into great detail about acoustic problems and their solution.