[quote user="sharples"]1.How does the Marantz fit into the title of blu-ray [/quote]
Marantz is expected to launch a Blu-ray player later this year, but I suspect it's likely to be at the more premium end of the market.
[quote user="sharples"]Would it best to go the CD route wait awhile for the blu-ray market to sort it self out and get a better deal[/quote]
Yes, sounds like a sensible plan to me, although keep in mind that any AV receiver, however good, is something of a compromise when it comes to stereo music playback so I'd go for a budget CD player.
[quote user="sharples"]What would you recomend for a CD and seperate blu-ray player[/quote]
If you're still going with the 605 Onkyo, I'd get something like the Marantz CD6002 (£270) or Cambridge Audio 540c or 640C V2 (£200/£250) and pick the MA BR2 or Tannoy speaker package, rather than the KEFs.
As for Blu-ray, we've just tested the new Panasonic player at £350 which is very good, but it might well be worth waiting until some more models come to market and prices start to drop. It's still early days.