What processor competes with best preamp?

My question re:comparing processor vs.preamp is to help me decide whether to upgrade my current home theatre system with better electronics or to keep as is enjoying movies and CD's and start another stereo system to fully appreciate the current HDCD,SACD,etc.

I own a Primare P30 pre/pro to go with my 2-channel system. I've compared it side-by-side to the fairly highly rated Ayre k3-x pre-amp. The P30 was much more transparent and detailed than the k3-x. The k3-x was a bit more musical and sweet sounding but I believe the K3-X had much coloration that resulted in that sweet sound. For whatever it's worth, the K3 was rated Class A by Stereophile about a year ago. The K3-X is an upgraded and sonically superior version of the original K3 again according to Stereophile mag.

The P30 has a by-pass mode that provides 100% analog for 2-channel music. I've also compared the P30 in-home to the Conrad-Johnson PV-14 pre-amp and Electropaniet's pre-amp. There was no comparison. The P30 was clearly superior sonically.

Primare is a little-known Swedish company and the unit retails for about $4k. The P30 is among the cheaper components in my system (my 2-ch. amp retails for $7k, my speakers for $8,700, and my 2-ch. SACD/CD player for $5k) and I have been extremely satisfied with it's performance.

-John (IMO)

Thank you John for your descriptive follow-up.I'm sure this will help others who have had my same thoughts.I will now upgrade my system to have the best of both worlds.