Integrated or Separates on a budget


I am in the process of upgrading my existing system on a budget. My first purchase were Paradigm Studio 100 v2. I have a Sony cd carousel and an integrated I am replacing. At the very most, I have about $1200 to spend. I plan to buy used. I need to drive 2 sets of speakers. I have heard that getting separates is generally better all around, but I am not sure if it is possible to get quality pieces in my price range. Any suggestions?
blewis1041
Also, I was very much ready to buy the Creek - it is highly respected here. Having trouble finding it used, I started calling authorized dealers for demo units. A guy here told me they had several that either hummed or overheated and that they were no longer carrying them (although they are listed as an authorized reseller). Any comments on this?
Having to drive two sets of speakers from the same amp limits the possibilities somewhat. In this case you might actually want to go for entry-level separates, if only to choose a preamp with two sets of outputs so you could buy and drive a second power amp later on.

I wouldn't look at Cambridge or NAD, though. I would see if I could find gear by Linn for this, or perhaps Rotel. Linn are good at multi-room systems. Used, a Wakonda or Kairn preamp and an LK85 or LK140 (much better-sounding) might work. I'm afraid you'll have to ask a dealer or check Linn's site to see if these amps will do multiple speaker sets.

For the same money, though, you would get better sound from many integrateds. I would forget tubes unless I had technical help, because of the multi-speaker requirement. If I could find some way to live with only one set of outputs, I would want to try an integrated by YBA, Sim Moon, Vecteur or maybe that Portal.
Thanks. I'm curious as to the comment on the NAD. The c372 (?) has been highly recommended here by several people.

The issue with the speakers is I have an in-ceiling pair in the dining room - Polk (new but basic), and the Studio 100s as my "real speakers." I don't necessarily need to
drive both pair at the same time, but I don't want to have to unplug. Also, I have heard some switches work, but I have spade cables, so the "twist-in" kind won't work.
Blewis1041, about the NAD, it's my champagne tastes I'm afraid. I always try to stretch to the very best possible sound for the buck. I'm willing to do some hunting for it and put up with some inconvenience in the outcome.

The amp you mention is still very good. I recommended and had installed its precursor, the C370, in my school's computer lab to drive PSB Image speakers for the projection system. The result is great on movies and demos, and better than most any school has a right to expect for music.

I'm ridiculously golden-eared, and the integrateds I named above (and even the Linns) play in another league--but they won't do two speaker pairs easily and the NAD will.
Blewis, do you have room for a separate amp with volume control (e.g., your integrated that you're trying to replace, or the McCormack Micro Line Drive that just sold for $260) to drive your dining room speakers? Then, you could use a spare line-out, like a tape out, from your main preamp or integrated amp. This would give you a much larger selection of pieces to choose from for your upgrade, and you could really concentrate on your hifi goals for your main system. I'm assuming you wouldn't have to be overly picky or spend-y about the quality of amplification and cabling to drive your dining room in-ceiling Polks.