Upgrade B&W speakers or MArantz Receiver?

The amp costs less and opens the door for you to transition more easily into seperates. You should really recognize a bigger improvement from that than going to a better receiver.

Save the extra money to put towards speakers or the most over looked item; a good preamp.

None of the moves is wrong, but I think starting at the source and working toward the speakers is a more efficient way of hearing what you are doing.

The RB 980 is a good place to start. You could build a reasonable system around that amp.

...and dats da name a dat tune!

First of all, the CDM-1's will be a definite upgrade from the 601's. But B&W Matrix 805's will be a HUGE upgrade from not only the 601's but also the CDM-1's. They come up fairly frequently used at around $800 but sell QUICKLY--you should scour A'gon & E-bay every day.

And IMHO, forget "upgrading" to a Rotel amp. Not that they're bad, but for $800-$1000 (used) I think you have a lot better choices. The top of the line Creek, the small Classe, (101?), the Bryston B60, even the Krell 300i for $1000 I think is better than a Rotel. And lots more choices I'm sure--maybe even an older Plinius.

My point is, you can probably upgrade a couple of levels beyond the gear you're talking about getting w/o spending much more, & move from "mid-mid fi", to a really happening little system.

And yes, sell of the surround stuff & concentrate on 2 channel, esp. if you're on a tight budget. Just my 2 cents!

Thanks for your responses,
The Rotel for $ 800.00 is a receiver with 75 x 5 watts and I was hoping to use it with a Power amp for the fronts and still be able to use it for surrounds without additional amps for the future.
OR I could just get the $ 250.00 used 120 x 2 amp for now and use it with the marantz receiver and try and get a little more cash to find the Matrix or cdms.

Whaja think?

I have to agree with steveaudio. You'll see an improvement going to the Rotel, but it won't be worth it. The speakers you have could sound GREAT with better amp and source. Of course, I am in love with the 805's. I'm afraid I have to say, hold off until you can afford a great amp. Later you can upgrade to a pre-amp with home theater pass through. This allows perfect two channel, but allows you to use the main speakers as part of the H.T. system. Use the marantz as a pre-amp until then. His recommendations are good ones. Throw in Aragon 8008, Belles hotrod in your pricerange. Add analysis plus oval 9 speaker cable- less the 200 used for 8 ft pair. Remember- You never see a Nautilus 805 in the store hooked up to a marantz cd player and receiver- start with the fundamentals and your current speakers will sound better. Good rigid stands are a help. Sorbathane or vibrapods under the cd is a great cheap tweak. Have fun.

Ps- Steveaudio and I are talking two channel amps. Use the marants for the surround. Thats why your 800 is buying a much more natural sounding front channel.