7.1 HT under about 3k

Thanks Sdcampbell. All input is valuable to me.

I didn't realize all of that, I was just assuming that 7.1 was the latest technology and it would become "standard". I'll give the 5.1 vs 7.1 question more consideration.

Just wanted to point out also, that the budget is for the HT proc only, speakers will get separate consideration.

Wow, lots of information in there. Unfortunately, I don't have a ton of choice as to speaker placement. I did try to follow the basic guidelines at one of the sites as best possible (can't remember which at the moment, may have been Dolby or THX or Crutchfield).

I just replaced a 5.1 system with a 7.1 system and I'd agree with the folks that say the 7.1 is a more involving experience; there just seems to be more sound enveloping you and better spacial positioning (maybe this is just my imagination, but it would seem to make some sense).

I don't really understand what flrnlamb is saying about using a HT proc with other audio equipment, can someone take a stab at how that gets setup for someone who's never done something like that (my only experience is with entry-level audiophile audio and HT, so very basic stuff). Is there some way to use the 7.1 proc for HT and regular 2 channel componentry when just listening to audio, somehow bypassing the HT stuff in order to feed the signal through higher quality audio components?

Thanks!