Audiophile Results

I'd say the amplifier. A great amp with an average processor should easily out perform a great processor with an average amp. The processor technology changes all the time. Today's top line processor is tomorrows mif-fi.

Depends....a good expensive processor should give you great flexiblility on sources and tailoring teh sound (may even adjust for room modes (notch filtering))

A great amplifier will get you better sound - generally more headroom and better transients - provided you have speakers that will make use of the extra amp performance! (Don't spend 10K on an amp and preamp and only $500 on speakers. Imagine a racing car with no gearbox and tires!)

the signal is more important than the amplification.

the digital source will have a greater impact than an amplifier.

In my system, the processor made a huge difference. Getting 24/196 with upsampling will make a difference vs a mid-fi 24/96 from 10 years ago or so...
Having 2 channel direct, 8 channel direct and/or a pass thru mode makes a difference.
Also consider toslink vs coax digital for quality.
A system is only as good as its weakest link.
On a brighter note, if you have an "ok" processor that has 2 channel direct with a good cd/dvd, it may get you by for now?

As you can see, there is no one correct answer. Everyone will have their own opinion to share with you, but what works for them may or may not work for you. You just have to listen for yourself.
I would suggest some form of balance. A great A/V processor with weak amplification will sound no better or worse than a great amp driven by a weak A/V processor.

Cheers,
John