why is nobody buying the meridian 565 for 1200 on audiogon?

The 565 for $1200 does not have the Z3 upgrade which allows it to do DTS and 7.1 surround as well as take advantage of many of the improvements and extra features (variable crossovers, 24-bit digital input, etc) available in the current version 6 software (in EPROM). The last version of the software it can run is 3.9. The Z3 upgrade costs $995, so to get it current the total cost would be $2195.

Currently, I see two Meridian 565 listings. I recently purchased a used Meridian 565 for just about the same money. It is the most recent updated model, the 565 7.1 with the Z3 card. It is simply awesome, no yawning in my living room / home theater. A major upgrade from my Denon AVR-2700 and my buddies Yamaha DTS, dolby digital set up. The 565 7.1 gives very little to the 561 or 568 (local dealer) to my ear. One dealer is selling one new in the box for $2200. $1200 is a very good price for this multiaward winning, Stereophile Guide to Home Theater AAA rated product. It's only limitations, yes, it is clumsy to set up - but it offers huge flexibility and room speaker placement, size, customization, etc. (See Meridian's website). Also, the 565 has limited inputs if you want to use it as a preamp (hence the pairing with the 562 series of multi-inputs, digital and analog). I run my
Pioneer DV-05 into the 565 outputing into my front channel stereo system and piggyback it through the Dennon's inputs for center and rear channels from my Dennon's external processor inputs. Using the 565 as a DAC from my Meridian 508.20's digital outputs, the sound comes very close to this awesome CD players sound (I think the only difference is the 508 has fully balance outputs). Anyway, I don't think you could go wrong with the 565 if it's the 7.1, or upgraded to the equivalent. Offer a little less if you can.
Ron

Probably because there isn't one available currently for that price. Not to mention that 500-series=yawn (buy a lexicon). 800-series=Cool stuff but way overpriced.

-Ed

I thought your budget was $500!

Seriously, from what I understand, the Meridian products work best when the entire system is Meridian. That may not be true, but other people may also be under the same misconception. I too have heard that they are difficult to set up - I thought I heard that you have to use a computer to do so - although again, I'm not that familiar with Meridian.