I was getting excited about my next upgrade, but it seems the features that I was counting on don't actually exist. My current setup is a 5.1 in the basement powered by an HK 630. I'm really happy with the 630's sound quality, but it is pre-HDMI so it's a bit short on modern features. Zone 2 is in the living room on the main floor and is used exclusively for music (network streaming, internet radio, and possibly the occasional CD). Zone 2 is powered by a cheapo Craigslist (pre-digital input) receiver hooked up to a couple of Klipsch satellites. The plan is to use those speakers to add rear surrounds to the basement, replace them with 2-4 towers or bookshelfs in the living room, move the HK 630 upstairs to power zone 2, and get a modern receiver for the basement.
The question I have is, what is the best way to get sound from the basement to the secondary receiver? Currently I have some Cat 5e hooked up to a couple of baluns doing the job. However, this has not given me very good quality. I can't turn up the volume in the living room very high before the background hiss becomes unbearable. I was hoping the new receiver would have a coaxial digital output, but I see this feature is extremely rare (nonexistent?) Are there any models that have this? I'd like to spend <$1k, but I'm willing to save to do it right. If I stick with analog, would replacing the cheapo receiver with the HK make much of a difference? I am skeptical this would improve things much given the big loss of quality the time I tried powering zone 2 from the pre-amp outputs. In other words, I think I'm losing too much quality from the long (20-30ft) cat5e run for a downstream amp to make up the difference.
Is there anything else I should try?
Thanks,
J