Advice on AV Receiver versus Separates

It's a good pairing so the question isn't whether or not its good. In fact it's a great option for a multichannel setup. If you got a grea deal on the combo don't look back and enjoy. Only if you feel something is missing or isn't right should you then explore other issues or preferences with other components. Speakers---the ones you are using---will be the critical factor.

The 7005 is excellent but a little dated. You might consider one of the more recent Denon/Marantz/Onkyo/Integra AVRs for more up-to-date features.

While not having the latest & greatest version of Audyssey, the AV7005 is still an excellent pre/pro and combined with the MM7055 you are considering, you would be hard pressed to find an AVR that would match this combos performance for your $1500 investment.

The only thing you need to watch out for is the impedance of the speakers you purchase. I don't believe the MM7055 is rated into 4 Ohms; only 6 & 8. So make sure the speakers you select are 6 or 8 and you'll be fine as the amp generates plenty of multi-channel power to get the job done. So go for it and you'll be on your way to a great HT system.

Thanks for the great suggestions guys!

I personally feel that passive speakers with just one sub should do the trick. I care more about stereo performance personally, so want to save the budget for speakers instead of multiple subs.

Good tip on the resistance. I will keep the 6 or 8 ohm impedance in mind as I select speakers.

Also looking at the MM8003 8 channel amp as an option. That way I can biamp the three fronts. Any thoughts on this vs the MM7055?