Thanks--
To look at this from another angle, if I were to use an Emotiva UPA-7 amp for $550, is there a receiver that will provide the functionality of the SR-876 and total out @ $1000?
No.
I was trying to help you decide for yourself in terms of which might be most beneficial, between:
-876, with some money in pocket
-different receiver + greater power/headroom for a bit more
-different receiver + better video processor for a bit more
-different receiver + greater power/headroom + better video processor for a lot more
sounds like #1 wins for you: less money. try the 876 then. While the 876 lacks compared to a beefy outboard amp, and lacks compared to an outboard video processor, you do get a lot for your money. But if you could narrow down either the importance of power vs video, if you had to choose one, you could pay maybe 200-300$ more by doing a different combo. I hope that makes sense as far as where I was coming from.
Can I use the UPA-7 in a 5.1 configuration?
Sure, why not? You'll either have two unused channels, or you can try figuring out a way to passively biamp your mains. I wouldn't know the best way to recommend how to do that, unfortunately, and depending who you ask, it might not be worth the trouble. Of course, ya just might be fine with the receiver all by itself. And like I said, I'd definitely wait on adding the amplifier, because you very well might not need it. This will depend on the DB levels you desire, distances you sit from speakers, and the speakers' characteristics.