Which is better: separates or receiver?

I would look at separates, B&K ref 20 and matching 5 channel amp or Lexicon DC-1 upgraded, and sometype of good solid 5 chaneel amp, B&K, Rotel, Bryston(if you can afford one), The key is performance for the dollar with a possiblilty for upgrades. I have a B&K and like it, has 2 channels so it plays music very well. And with some of the prices on the Ref20 $1000-$1400 you cannot beat it.

Slingshot, your points are well taken, but please answer the following: Being that the room is the single largest determinate of sound quality, why would anyone spend large sums of money on equipment if they are going to not address room issues. Using bang for the buck as the guideline, money spent on room treatment is probably a better investment than cables.

The room treatment and the cables are all important I think we can all agree on this point. I'm just wondering what are the locations of room treatment products when you are considering five speakers and a sub? When people say room treatment are they only considering an improvement in two channel sound? Are the locations for room treatments the same for five channels and 2 two channel systems? I'm not sure but I think I'm getting confused.

The subject of room treatment is too big for this format, but let me give an overview. Low frequency standing waves need to be addressed. Speaker placement and corner bass traps are effective for this. Early speaker reflections from nearby walls, the ceiling and the floor need to be attenuated. At the same time you must be careful not to overdamp the room. These points apply to 2 channel as well as HT systems. The Stereophile Guide to HT has a series of excellent articles that go into great detail about acoustic problems and their solution.

Onhwy61 ... You are right. My post assumes that the current room is at least acceptable, from a sonic stand point. Tweaking a room can cost a bundle or next to nothing if done creatively. I just feel that dismissing seperates out hand due to a lack of dedicated, highly specialized listening space is short sighted. Sharing a room with other household activities does not preclude making good sound, or even getting more out of said room through changes. Ergo, imho, seperates are still a better bet ... ASSUMING that the current room isn't a sonic basket case.