Audiophile Results

I'd say the amplifier. A great amp with an average processor should easily out perform a great processor with an average amp. The processor technology changes all the time. Today's top line processor is tomorrows mif-fi.

Depends....a good expensive processor should give you great flexiblility on sources and tailoring teh sound (may even adjust for room modes (notch filtering))

A great amplifier will get you better sound - generally more headroom and better transients - provided you have speakers that will make use of the extra amp performance! (Don't spend 10K on an amp and preamp and only $500 on speakers. Imagine a racing car with no gearbox and tires!)

the signal is more important than the amplification.

the digital source will have a greater impact than an amplifier.

In my system, the processor made a huge difference. Getting 24/196 with upsampling will make a difference vs a mid-fi 24/96 from 10 years ago or so...
Having 2 channel direct, 8 channel direct and/or a pass thru mode makes a difference.
Also consider toslink vs coax digital for quality.
A system is only as good as its weakest link.
On a brighter note, if you have an "ok" processor that has 2 channel direct with a good cd/dvd, it may get you by for now?