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Bob...I will make it simple.
Take your receiver.....take out the amplifiers and associated circuits, and then you would have a pre-amp/processor. So with your Yamaha, you have the capablity to use an external amplifier and bypass the amplifiers in the receiver.
The advantage of a seperate pre/pro and amp is less "interference" between the two components. And, you can upgrade/change one without having to change the other.
-curtis
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