any comments on the rotel 1066 surround processor?

Might I suggest another sellection to complent your gear?! The weak spot in that set up, even if you only use the Rotel as a digital HT preamp only, is going to be the Rotel itself!
While ok midfi gear, the Rotel is no cleaner than many receiver preamp sections! You could get the same kind of sonic performance using an inexpensive Yamaha or Marantz AV receiver from it's pre-outs!
I take it back...if you use the Rotel as a movie preamp only, and STRICTLY use the digital input for ALL purposes, the sound is ok.(still not the most refined, transparent, or dynamic however!) Anyway even the old Acurus ACT 3 is more refined sounding than the Rotel.
Your best sound for the money will be the used Classe SSP25(by a wide margine for what it offers). With very very neutral, detailed, and dynamic sound, it also offers "dirrect analog throughputs" for all inputs, and very good sounding dac's and preamp section! Also the noise floor is way low!..which is a huge plus.
Anyway, not sure of your budget. But if you can, you'll do well to find a used Classe at around $1000 price range if you can! *(i've seen em as low as $600 on ebay!)

So,any thoughts on what you might do? Just currious if you had any other ideas...

does gettign an older Classe or other brand compromise on the newer formats and technology available? I am in a similar situation, if you see my post on the amp/preamp page. I need an inexpensive pre/pro for video duties while I upgrade my 2 channel for purely music. Not lots of bells and whisles just decent video sound and current formats.

Hi cconrad. I actually have virtually the same setup as you are proposing. I have a 5.1 HT system with Marantz DV-12S1 DVD player, Rotel 1066, McCormack DNA HT-5 amp, B&W HTM Center, and B&W 805's Front & Rear (all on Sound Anchor stands). I'm running the DVD player to the Rotel's digital input and I've been very satisfied with it's performance, especially in DTS. Foreverhifi is probably correct in stating that the Rotel will be the weakest link in this such system and that a Classe could sound better; however I've personally never listened to any Classe products, but many audiophiles on here seem to like their stuff. Overall though, I've been very satisfied with this system and the only upgrade I may look into some day is a Theta Casablanca after the Rotel, but for now the Theta is way out of my budget. I previously had a Yamaha A/V processor which in my opinion sounded very flat and non-involving compared to the Rotel 1066, so I decided to upgrade and debated on getting the Rotel 1066 or B&K AVR 307, so I did a side by side comparison in my dealer's store of the Rotel 1066 versus B&K AVR 307, just comparing the B&K's pre-amp section (I didn't care for the amp section). The Rotel sounded noticeably better in more low-level detail coming through, but it was a very close call between the two. Interestingly, the B&K AVR 307's pre-amp section is pretty much their B&K Reference 30 which can be bought separately I believe for $2500-$3000 new, compared to the Rotel 1066 for $1500 which is built excellent like the B&K and is upgradeable. I also had considered getting the CJ MF5600 as you because I see them for sale on Audiogon, but decided on the McCormack DNA HT5 after auditioning their DNA 125 and 225 amps and loving the detail that came through. I do happen to have a CJ MF2500A 2-channel amp for my music system and love it! Both companies make great amps so I don't think you could go wrong with either one (CJ owns McCormack now anyways). Well, hope I helped you out and that you try some dealer demos yourself before making a decision, especially if you can demo a Classe. Then if the Classe sounds alot better and you can get one on audiogon for $1000 go for it, otherwise I'm sure you'd be very happy with the Rotel. Good luck to you!