Upgrade advice wanted - Replace Sony DA777ES or use as amp?


I have an old Sony DA777ES in a bedroom that's hooked up to two Epos M15s, and a PC and some old game consoles.

Recently, the Sony's digital processing went kaput, so I'm looking for a replacement.

Should I replace it with a new receiver, or buy a preamp/processor and use the Sony as an amp?

Id like to spend no more than $1500, with the ideal closer to $1k.
cinnamonandgravy
It seems then that you have a 2 channel system. Does the Sony still work as an line level integrated? If it only works as an amp, I see no reason not to use it that way, and spend your money on the processing side.

What processing do you need? 
1k will get you a bunch of used gear.. Adcom 535, 545, amps. b&k pre, belles, sonographe, yamaha natural sound stuff, nad.  These would most be analog rca input, no digital, and no video options, which wood just go to your tv anyways