Which Processor, Is Rotel 1068 a good choice?

Hi,

I am renewing my HT system.Need Advice.
I recently bought the following:
Main Front Speakers: B&W DM603 S3 Floorstanding
Main Centre: B&W LCR60 S3 Centre Speaker
Rear Surrond: B&W DM600 S3 surrond speakers
Power Amp: Rotel RMB1075 120W x 5 (High current five channel amplifier)

I already own:
Yamaha AV Receiver 1200
JAMO subwoofer X800 (350Watts RMS)
Bose satellite speakers 15 to 200 watts RMS (Used in my bedroom)

Usage:
1)Primary for listening to shared music available on the net. I have Stored plenty in my iPod. Why iPod? Because that way I can have a Jukebox (Party Shuffle feature) running for a specified time.
2)Watching DVD's

3)Listening to Compact Disc

The setup is such that I can watch movies in one room(HT room) and listen to Music in another(Bedroom). Only the Bose speakers are placed in my bedroom rest of the setup is in the HT room

I need to change my receiver for three reasons:

1)My receiver is configured to use the subwoofer so when watching movies the setup is OK. But when listening to stereo in the bedroom the bass/LFE is transfered to the subwoofer and bass is heard in the HT room.The yamaha receiver has a default setting for the subwoofer so its either "there" or "not there".

2)Given the size of the rooms (Both are approx: 15" x 12")There are not much options to control for the speakers (read that some seperate processors have the capability to let you adjust the sound levels on a "speaker" basis)Specifically the Subwoofer since it has lots of power so i am looking for a processor which can address this issue. The bass is horrible from the Jamo subwoofer if the volume is increased to level 2 (There are six sound levels inbuilt in the subwoofer) So am not getting much out of the Subwoofer

3)Since I already have a separates for Amplification why not go for a processor seperate which i will benefit from.

I have considered purchasing Rotel RSP-1068 and a two channel power block Rotel RB-1070

Krell,Lexicon etc.. seem to expensive.Should I consider these brands instead of Rotel? Which Brand and model would be a good companion to the setup I have. Any Suggetions, Advices please.

Thank you