Seeking advice on buying a surround sound system with music playback the priority

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Same old conundrum. I am on a fairly low budget for this and have been looking for deals on HD home cinema equipment. I can get a Sony BDPS350 blu-ray player for about £170 and the Yamaha DSP-AX861SE amp for about £250 but not sure whether CD playback will be any good through the amp (I am planning on buying either one of the new Cyrus CD players or a second hand Talk Electronics Thunder 4/Whirlwind 3 - any opinions on this would be useful too!). I would be interested in an older amp (e.g. an Arcam AVR300) that I can feed HD sound to from a Blu-Ray player such as the Pana BD55 but don't want the spaghetti this usually results in. What older amps (i.e. without all the latest decoding so I might be able to buy one at a heavily discounted price) are available that recieve HD audio via HDMI and play a decent 'hi-fi' tune. The only seemingly 'perfect fit' I've seen is the upgraded Audiolab 8000AP/X7 and I can't find any deals on it. Is there such a thing as an HDMI adapter for an Arcam or other older high quality amp to avoid using analogue outs from the blu-ray player and if so, would using this actually downgrade sound quality (I have seen something on a Lektropacks advert that looks like it might do this for £115)? Other options are spending more (obviously!) on a surround amp that would take advantage of the Cyrus, using a separate amp for stereo playback (not my ideal scenario) or a stereo amp with pre-outs for something like a 3-channel power amp (but wouldn't the two amps have to have a similar character for a balanced sound?) Any thoughts?
 

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