The panny does sound quite good and has a sound above its price point because it is basically an amp and dac in one. However digital amps are not everyones cup of tea. But then again, unless you are an experienced audiophile, that has listened to a lot of amps you may not notice much, if any difference. Blind listening tests done with Joe average shows very little difference, if any between, competently designed amplifiers. To pick differences you need to be an experienced knowledgeable listener. I believe the Harmon Kardon HK3480 has pre outs. A better option than a new receiver could be a power amp. There are number of cheapish ones around these days eg the Behringer A500 at $180
http://theaudiocritic.com/blog/index.php?op=ViewArticle&articleId=20&blogId=1 'The measurements of the Behringer A500 are not quite as good as those of any number of more expensive solid-state amplifiers but they are more than good enough to meet all the criteria for transparent sound as specified above, in the second paragraph of this review. There is no such thing as an effect without a cause, and there is no scientifically verifiable characteristic that would cause the A500 to sound different from any other amplifier that meets those criteria. The main reason why golden-eared audiophiles hear differences between amplifiers that do meet those criteria is that they don’t listen at matched levels. (Let’s not even bring up the more complicated subject of double-blind listening tests.) If one amplifier is just 0.2 dB louder than another, it will sound different, and therefore “better” or “worse.” Someone is sure to say at this point, “Well, what about that –0.6 dB rolloff at 20 kHz?” Come on. I can’t hear it; millions of others can’t hear it; if you can hear it, let that be the one and only way the A500 sounds “different.” No, sound quality is not the issue here.'
A word of caution here - Peter Aczel hold views not in line with the audiophile mainstream - he believes all amplifiers basically sound the same. For your average casual listener it is probably true. But audiophiles are not you average listener. Still the amp does have reasonable specs and is very cheap.
To get an 'audiophile' amp unfortunately requires a bit more than $200.00. On a budget I recommend a Van Alstine as an actual audiophile amp:
http://www.avahifi.com/root/equipment/amplifier/omegastar_240.htm They allow you to audition them, which is obviously the best way to go. Trouble is dealers/manufactures that allow you this privilege are not likely to be the cheapest.
For what its worth I would get an audition of the Van Alstine. If it doesn't sound any better than the Harmon Kardon stick with that, otherwise fork out the extra dosh for the Van Alstine.
Thanks
Bill