Amp using a receiver as a pre or integrated?


I have a pair of Dynaudio 1.8 MK II's that I bought prior to the arrival of our baby boy. My wife has become a stay home mom, which has limited my potential for amplification upgrades.
I currently have a Denon AVR-85 that isn't designed to handle the 4 ohm loads of the Danes, but I could use the pre-outs and hook up an amplifier (e.g., Linn LK85), or I could tie in an integrated to the system (e.g., Audio Refinement Complete or NAD 370). I want to know which would sound better for 2-channel listening. I want to spend less than $700 if possible and will purchase good used equipment.
Room is about 12 x 16 with 8' ceilings. I don't listen loud, so I am looking for quality, not quantity of amplification. I listen to Jazz, classical, classic rock, and southern gospel music.

Any recommendations would be greatly appreciated.
shadowfax
If you don't even need the Denon for surround sound, and you want it under a grand, under seven hundred, you could get a sealelectronics.com amplifier kit which either of the two top of the line models would cost you less than $500 in parts and from there find a nice preamplifier at a good used price (or build one too) and sell the denon to help fund it all. The designer of the kits, Randy Slone, has a book on amplifier design which is good and full of other "state-of-the-art" designs. (I own a copy). If comparisons are important, on another site, which had a never ending thread on these amps (it went way off topic is why, funny that) one individual built two of his opti-mos kits and said they bettered his $3,500 Naim by far. But that would give you really nice sound for "pennies." The Van Alstine gear is good too, but you'll have to shell out $1,000 for one of their amps avahifi.com (built of course). I've heard Randy Slone is rather friendly so you could drop him a line and he could tell you alot.
Congradulations on the birth of your son. I am quite sure he will make you much happier than an amplifier. I would defer an major purchases or now and invest in a good camcorder and VCR. They grow up so fast you could miss it. Soon enough you will have someone to share your hobby with usually by age 8 they are helpfull and less dangerous around high powered amps. Some helpfull advice ; Keep all your electronics in a closed cabinet, amplifiers need to be kept high off the floor or under the floor like in the basement, wires and cables are run into the walls or floors, and your speakers need to be off the floor or stand mounted secured to the floor. My choice of amp would be a used B&K Reference 4420 . About 700 used or 1200 new. It has both balance and single ended plugs and will grow with your needs and drive your speakers . Hope this helps