Recommend a Stereo Preamp w/ digital optical. No video processing

Music Hall Mambo: http://www.musichallaudio.com/mmf_pr...&prolook=mambo.
Of course, this is PCM only and will not do DD or DTS.

You're asking for something that is very rare, being a stereo preamp that's actually equipped with its own DAC. You can get these as separate components, although it might stretch that $1,000 budget.

The Mambo that Kal mentioned isn't just any 50Wpc integrated amp. But this will really come down to how efficient your speakers actually are.

It is a quite potent amp. What speakers are you driving that make you think this inadequate? Remember, with 2.1 and a powered sub, the amp is only driving the main speakers above the low bass.

BTW, no other suggestions as I know of none that suit.

You are just as well off to get a surround receiver that will easily do what you want and give more power as well (and probably cheaper). Just us it in 2 ch (or 2.1) mode and forget about all the features you have but don't need. As an added plus if you ever decide to go multichannel you already have all you need in the receiver.

Don't forget that 50 watts on a stereo receiver isn't a fictional number the way it is on those 130 watt multi-channel receivers.
50 watts will drive most moderately efficient speakers to over 100dB. That's pretty darn loud in my book.

I didn't see any sensitivity figures on the linked page but, again, the amp only has to drive the speakers above the bass-management crossover and this is a very capable amp. So, I would not expect problems (unless you are a head-banger and/or have a cavernous listening room).

http://zaphaudio.com/audio-speaker17-L18-TS2.gif
That was on the linked page. Does that mean the sensitivity is really only 86db or am I reading it wrong?

The speaker, itself, is closer to a sensitivity of 80 dB. Hence, his concern for power. 50 watts only gets him to around 96-97 dB. I too would embrace an integrated amp with a DAC and digital ins. With that said, Music Hall also has a 100 watt stereo receiver with digital inputs, the Maven.

Another option would be that one Monarchy DAC with volume control. Get that and a power amp and direct drive the amp with the DAC and volume control. Bel Canto also offers DACs with volume control for direct driving of an amplifier, but they're out of the OP's price range.

AV123 has been talking about their x-series electronics for a long time. One of their models, the Empower^2, whenever it comes out, is a class D integrated amplifier that will feature digital inputs. I don't believe a DAC will be used, since it can use the digital stream to drive the class D section. It will have around 150 watts a channel at a phenomenally low price of $300. This is the one I have my eye on and intend on trying it out. But it's been vaporware for a few years now, and the specs certainly aren't set in stone.

I'm in the same situation as Defiant only driving the gallo refence 3.1 and that maven sounds interesting, good info Lindahl and everyone else thanks a lot

edit-does anyone know if the maven has a phono input, i can find anything that says what inputs it actually has or maybe i'm i'm just blind?