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Best affordable SACD player that does superb CD's
The Sony 555ES 5 disc changer of that era was a pretty nice player also.5 disc carousel woo-hoo! ;) 
Totem winds driven by Sony 5500ES
The Sony will do it all day long, But it's not worthy of those speakers.Look for a Rotel, NAD, B&K etc. receiver.It's OK to start w/ the Sony, But you'll want to upgrade soon. 
which Brand of Reciever produces the Best Audio?
Audition the NAD 785 if you can. 
HDMI vs analog
Yup, HDMI is all digital.http://www.hdmi.org/learningcenter/faq.aspx 
With Blu Ray Player would you connect both cables
Make sure the 550 does bass management & time delay on the multi-analog out. - The B&K's DVD-A mode bypasses it's processing.But yes the digital will still be active, But you may need to set the "priority" output in the menu of the sony be... 
Need help selecting bookshelf speakers for theatre
Check out the New Monitor Audio RX-2'sA lotta speaker for the $$ !!! 
Which high-end receiver?
The B&K absolutly stomps the competition.Hands down.No questions asked. (for it's price)Just as good as the Lexicon {If not better in some oponions}Way better than the Denon (audio & SQ) ((the denon is a good video switcher.... but a 97 lb...