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what blu ray players have 7.1 multi channel out AND which are ok for music playback

The new Sony BDP S760 has 7.1 outs. I don't think any of them are much good for CD playback.

most players would be ok (in my opinion) not that they would be a contender over a dedicated CD player

The high end Pioneer, Marantz, Sony players would be a good choice. But then you talking £1000+ which is silly money for a player

Look towards the Sony 760 (has 7.1 analogue out). I haven't heard it personally, but its getting rave reviews, in all areas. Shame the Oppo is not coming out now (yet.....)

If £330+ is out of your budget, look towards the Panasonic BD80 (7.1 Analogue), which can be had for £220, which is pretty cheap

i should have mentioned budget sorry.  basically, am thinking of a complete system change.  sell ps3 40gb. sell xbox 360, sell yamaha '763.  replace with dedicated blu ray player and older arcam amp. so would need to go with that.  but i still want hd audio.