Sean is right. I have also read in consumer feedback (please check Audioreview on these two models) that current Krell HTS has bugs.
Another model you should consider is the Lexicon MC-1. I have auditioned all three previously and chose the MC-1. Some people are concerned that its two channel capability may not be as good. Personally I didn't think that was the case and really liked its home theater surround sound much better.
In any case, all three models are coming out with new versions - the new Proceed AVP2, the new Krell Home Theater Standard (in sleek metallic silver) and the new MC-12 (with a much better looking outer shell versus the current cheap-looking shell of the MC-1). Krell suppposedly has fixed the bugs on its new HTS. All three new models are now heavily touting their 2-channel analog by-pass and balanced connections as well as home theater.
For myself, I initially tried to go with the same brand on AV preamp and amp, but finally settled on matching the MC-1 with the Krell KAV-1500, a 5-channel, 300 watts/channel amp along with B&W Nautilus 801, HTM-1 and 805 speaker system, with which I am very happy with both 2-channel and home theater sounds.