Might depend upon what features you want. The Parasound is an excellent 5.1 processor - although it does lack DPL2. The RSP-1066 offers a lot more in the realm of 6.1 & 7.1 processing, such as DD EX. DTS 6.1, and Rotel's own XS mode for additional surround processing.
If I was looking only for 5.1, then I would consider the Parasound due to its overall quality. Although I would hate not having DPL2. If there was any chance that I would later add rear channels, I'd want the Rotel.
If you are going to use it for HDTV switching, make sure you get the new series of the 1066, which provides much more bandwidth on its component switching.
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