Originally posted by silverpines
MikeK,
Thanks but from your response I suspect that you are implying that allthough it will work, it won't give the best in sonic terms. Is this true or do I need to match output and input impedances to get a good result?
Actually, I wasn't really implying anything
Your question was specifically about whether it would work - I just tried (and failed it seems

) to limit my response to the question at hand. As you didn't ask for anyone's opinion of the performance, I purposely tried to avoid giving one.
However, as you seem to be asking now.....
First, I've never heard the Denon unit. That said, while it may not be quite up to the standards of some of their seperates type products, I'd be very surprised if it were crap - in common with most of the major manufacturers in this arena, Denon really don't make anything which could be desribed that way IMO. Their stuff may not be the best in absolute terms, but it's always of a decent enough standard for the price - at least that's always been my experience.
The only other point I would make, is that your usual AV receiver isn't really a "seperate" as such either - it combines a decoder, preamp, power amp and tuner all in one box, all that the 700 adds is the DVD player built into the same box as well.
To limit the size (which is after all one of it's major selling points), and keep the unit price competitive, inevitably a few compromises
have to made though, but for many people they are probably not that big a deal.
The Kef Eggs?
If anyone asked me which £600, 5.1 speaker setup gave maximum performance, then the Kef Eggs wouldn't be my choice.
Too many compromises based on looks and size.
In other words, if performace alone were the sole buying criteria, then IMO, there are better ways to spend £600.
However, if anyone asked me which £600, 5.1 speaker setup would give good performance while at the same time being small, good looking and well made by a respected company, then the Kef Eggs would probably be at or very near the top of the list.
Often, for a variety of reasons, performance isn't the sole reason
for purchasing AV kit. Denon, Kef and others know this, and is why these products exist. A company could come out with a fantastic sounding set of floorstanders for £100, but if the cabinets were plain chipboard, I doubt they'd sell that many - I certainly wouldn't buy a set (I myself want my stuff to at least look half decent in the lounge, let alone the wife).
Given the restrictions you are buying under (and I think many of us have some sort of restriction like this to varying degrees), my opinion is that you've made about as good a choice as you can for the money - there are always alternatives, but whether these would actually be any better performance wise while still meting your other criteria is debatable!
Whether you will be happy with the end result is impossible for either myself or anyone else to answer - only you can answer that. Unless you have a critical ear or class yourself as a true audiophile, then I'd suggest the performance would be entirely satisfactory - certainly a million miles better (I hate these cliches, but what else can you say

) than just TV sound. True, it could be bettered for similar money, but probably not whilst staying within your buying restrictions.
Hope this helps!!!