Wow, thank you everyone for your inputs. I didn't expect to receive this many feedbacks in such a short time. It seems that I have underestimated my father's 10-year-old equipments.
I certainly will not be selling the MC7300 power amplifier now and will keep the system at 2.1 set up. My question now is, since I will mostly be listening from my (hehe "my") MCD7008 CD player only, do I need the C40 preamp or will it sound the same to just plug it directly into the amplifier?
Also, If I do sell just the C40 and MR7083 (I don't listen to radio much), what do you recommend as a good subwoofer to match the Revel M20s? I know the Revel B15s are awesome and will blend in well sonically and visually, but that thing is too big for my small room and quite out of my budget range. Somewhere around $1000-$2000 would fit my wallet a little easier.
Oh, I forgot who asked, but my father is upgrading his speakers to a pair of Revel F50a front speakers, a C50a center speaker, a pair of S30a surround speakers and a B15 subwoofer. For the preamp and poweramp, he's upgrading to Lexicon MC-12 pre-pro and LX-7 power amp. He actually hasn't actually swiped his credit card yet and this new system will cost more than his current car, so if anyone has a strong feeling against this upgrade, please tell me ASAP.
Once again, thank you everyone for your input and this is by far the best hi-end audio forum I have seen or heard!
Spacekadet