Moving From AVR to Amp


Relative newbie here so please excuse my lack of knowledge. I am assembling a system for HT and music (70/30 respectively). My room is 29x12, viewing/listening position is about 8-10 feet from the front speakers. I started a couple of years ago with Totem Forests, Model 1 center and Lynks rears, Velo SPL-1500R sub. in a 5.1 set up. I have been using an Onkyo TX-SR805 and a Squeezebox just to start while I gradually build my system. I recently added a media center PC built by a friend, that I use mainly for streaming movies and as a blu-ray player. I am thinking of (1) adding a separate multichannel amp (either 5 or 7 channel) and using the AVR as a pre/pro for a while, (2) getting a good stand alone DVD/CD player now, and then adding separate components in the next year or two. I am budgeting roughly $3,000-$4,000 (including interconnects) in this phase of the upgrade. Used but well cared for equipment is fine with me to maximize the value of my system. My questions, before I go listening/shopping: Is this a reasonable way to upgrade? Would I be better off selling the AVR and starting from scratch? What amps should I consider? Is it better to get a 5 channel amp for now and add a separate amp if I go to a 7.1 set up later? Sorry for the long post, but there seems to be alot of info to sort through and I am trying to learn.
theclam
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I have the same Onkyo 805, and I think it is quite good for HT. Plenty of power (130w/ch), Odessey room equalization, THX certified, 7.1 so you can biamp. That said, I have to agree with Ckoffend. A dedicated 2 channel amp for music is going to be much better that a multichannel amp.

BT, I wouldn't worry about balanced cables unless you have runs longer than 4 feet or so. You won't hear a difference.
What is your ultimate goal? Do you want your incremental investments to improve 2-channel performance? If that is the case, you may want to keep your ONKYO and look for a good 2-channel integrated amp with a HT pass-thru feature. This allows you to use your integrated to 100% drive 2-channel and then use your ONKYO in conjunction with the integrated with multichannel. $4K will brink you a BIG step up if you head in that direction.
I am concerned about 2 channel performance. That is what sold me on the Forests and is the main reason I am looking to upgrade. For my purposes, the HT set up is satisfactory. The Forests sound good to me but not as good as when I heard them in the store (which I expected). My thought is that a 5 channel amp now would improve overall performance and then I can add a separate 2 channel amp in time, better suited to maximizing the 2 channel. I know I have to listen carefully and compare, but was thinking of something like the Parasound Halo A51 to start with and then adding a separate 2 channel in a year or so. On that note, what is the best way to audition amps. Assuming the store I bought from still has the Forest on display, should I expect them to make several amps available to audition or is that not how it is done? How do you go about auditioning amps?
Theclam, I think that approach is good. For auditioning amps, working with your local dealer (ie. buying new), I suspect that they would only lend you one at a time, but would probably allow you to bring your speakers in (take a day off of work and do it on a slow day). The way I buy amps and want to determine between 2-3 that I have researched is to buy several of them used at the same time, at decent to good prices. This gives you more time, sell the ones you don't like as much. Yes, this requires more cash upfront, but my experience is that there is less second guessing when you have finally chosen. If you buy them at good prices used, then selling them for the same amount of money is not very hard to do. Worse case, if you buy 3 used, pick your favorite and sell the other 2 you may be out $200-$300, but at least you will be confident in your end decision.

Also, when you are ready, start another post and state where you live. You wouuld be surprised how helpful members are and I wouldn't be surprised if somebody was willing to lend you an amp for a week.

I have owned several pair of Totems (Arro, Hawk, Manni), the are very good speakers. With a decent amp they really can sound great and you do not need to spend a fortune on an amp to make them perform very well. Though I have found that a mediocre amp can really weaken their performance in the HF/treble area and at sound staging (one of their real strengths).