Mcintosh processor

I have used MX 136, MX120 & MX121 as prepro's in my HT system and like them all. For 2 channel stereo I put in a stereo preamp. For me it improves the 2 channel sound.

So you think the sound will be better from older MX than HTS7.1? 
I like warm macintosh sound. The analog pre amp should be sufficient for 2 channel correct? Any other recommendations? 

Sorry, I have never owned Krell equipment so I can't comment on it. I do prefer a separate preamp for stereo in passthru with a prepro for HT use that way you get the best of both. I was going to order an Oppo 205 to replace my 105D but after I found out that it can't stream anything I decided against it. I watch Netflix more than Bluray discs.

Can I connect Apple TV to oppo 205 and use its video processing to improve quality of picture 

Can someone comment on mx134 vs krell HTS7.1 
I would like to connect oppo 205 via analogue to either and use it for both 5.1 for movies, sacd, and 2 channel stereo. 

I like macintosh warm sound, and don't mind it for movies either. Just need to know which one is a "better" machine, in terms of value, build quality, reliability, etc. Thanks 

The two options you have here are both very old, so reliability is going to be a gamble for either. They both were originally good build quality units. You might get a good unit and be fine for 5 years, but all electronics are going to be prone to failure after 15-20 years regardless of how well they are made. The biggest point of failure are the electrolytic capacitors. You could have someone re-cap the main power supplies in these units and that would help extend the life. I think the mac could be recapped throughout if they used through-hole capacitors. The Krell used all SMD caps on their analog circuits which will be a pain to replace. Both are/were In the same price range. There isn’t one machine that is "better". They are just different sonic signatures.

if you wanted something that will last a long time, then buy something newer. Like the Marantz AV7702 that I suggested before.

MX119 is newer than 134 has balanced outputs and close to my price point. I really like  MC aesthetics, Krell looks like a a cheap aluminum box from the 90's. With mx119 I should be able to play sacd's and hi def audio via analogue connects from OPPO correct? I am assuming ill get better 2 channel preamp from mx as well. Someone is selling a brand new in the box mx119, would would be a fair market price for that unit? 
I'm still gonna get KRC3 to match my Krell amp, I just can't help it. 

would I be able to connect apple TV to the OPPO 205 and have the sound go to my preamp and video to the TV? Apple TV only has HDMI, not sure if this will work.