[gooberdude]

I'm not well versed in HT & need some advice.  My blu-ray source is a new PS3, and i'm uncertain as to which (dac or ht preamp/processor) is the right decision for my situation.

I have a 2 channel tube system w/subs, the subs get their signal from speaker level inputs off the amp.

Should I find a decent dac w/optical inputs for the ps3, or find an av preamp to take the signal in hdmi, in order to take advantage of dts-hd,  dolby true hd & other hi-rez material?

I use a tranquility nos dac for music duties & have a multi-function preamp already.

My budget is limited for this purchase $750 or less 

I plan to purchase a 1080p projector soon, but have a 2 channel system for some time & prefer a processor w/no amplification & volume bypass).

any assistance is appreciated.

matt

[Mr Peabody]

It sounds like you are heading into home theater, I personally would keep your 2-channel system separate.  When I first went to tube gear it did not mesh with my solid state, I had to go down two roads myself.  My two systems do share the main speakers, I just manually switch speaker cables at the back of the speaker, a breeze with bananas.

In your given budget, unless buying used and getting old technology, not really recommended, you should buy a receiver with preamp outputs and use it as a preamp to an outboard amp array.  Second thought, if you act quickly Emotiva is blowing out their UMC-1 for under $600.00, preamp processor.  From there marantz, Onkyo & Rotel start clocking in around the $1500.00 mark for a passive HT processor.  The PS3 is a good move, games & movies, easy upgrades and still a very good Blu-ray player.

[MaxCast]

Will you be going to surround sound with 5  or 7 speakers?

[HT cOz]

Outlaw has Marantz SR50005 for $549. It has pre amps out.

That could be an option if you are starting to get more into HT.