1. I think you will want SACD as well as DVD-A, and the ROTEL SS processor has only one set of multichannel inputs. You really ought to get a player that does both. (I use a Pioneer DV45-A which is the good value that you seek at $400 to $500).
2. You don't need a separate CD player. The DVD will do that, and if you doubt its audio circuit quality you can put its digital output into the ROTEL, which has 24 bit D/A.
3. I used to think that the rear channels were just for ambience, and that minimal speakers, like your inwall units, would suffice. After some experience with actual multichannel recordings I have changed my mind about that. If you can swing it try for rear speakers comparable to the fronts.
2. You don't need a separate CD player. The DVD will do that, and if you doubt its audio circuit quality you can put its digital output into the ROTEL, which has 24 bit D/A.
3. I used to think that the rear channels were just for ambience, and that minimal speakers, like your inwall units, would suffice. After some experience with actual multichannel recordings I have changed my mind about that. If you can swing it try for rear speakers comparable to the fronts.