Peter, the major differences between the two are in 2 areas...The Power Supply, and the D/A converter. The 3200 weighs at least 5 lbs more than the 2700 this is because of the superior build quality with a beefier power supply and larger amps (this gives the 3200 a little deeper bass). The D/A converter for the 2700 uses 6 1-bit converters, while the D/A converter on the 3200 uses 6 18-bit converters, which means better decoding, thus better seperation and sound.
One thing the 2700 has that the 3200 doesn't is the ability to set your surrond speakers to "big" (they will receive signals below 80 Hz). However you had better have surrounds capable of going below 50 Hz without distorting before considering this option, or be without a powered sub.

All this being said the 2700 sounds great and wouldn't be a bad choice in any way. I bought the 3200, because I wanted a little more oomph...but I'm sure that even if I had chosen the 2700 I would still be happy.

Purchased mine through mail order ($600+shipping) and it finally arrived last night. Took me about 20 minutes to hook everything up, another 15-25 minutes to figure out the remote (mostly to get it to learn the commands of my other components) and literally 3-5 minutes to program the entire unit. I must say that, given all the features of this unit, it is EXTREMELY easy to program. The only real issue I have is that i'm using a Klipsch SW-8 subwoofer with both left and right channel inputs and the Denon only has one sub-out jack, but i can probably use a splitter to get around this problem, and i won't lose sleep over it.
The sound quality is worlds above my previous receiver. It replaced my 1988 Sony STR-AV1000 and sounds 100-fold better in both audio and video (the Sony was/is not DD or Dolby Pro Logic). It does sound a tad bright in some settings but the matrix mode seems to eliminate the shrilling highs (which really aren't that bad) and the 5-channel stereo mode is wonderful! I also don't seem to have the problem with pumping out bass as others have mentioned, though i do use the subwoofer (albeit small). I still wish it had a bass boost as turning the bass knob doesn't seem to make much difference. I instead turn up the level of the subwoofer, which makes it sound weak just above 80hz. I currently use a pair of Klipsch KG .5 speakers as my mains with an old pair of Advents as the surrounds. Certainly not high end (or even good low end) and i'm looking to move the Klipsch's to the rear and purchase the B&W 601's or 602's as my mains and adding a center channel. One thing that surprised me was that even without the center channel speaker the dialogue seemed to come directly from the center of the front of the room....and this was while watching Braveheart on VHS in Dolby Pro Logic mode! Can't even imagine how a good DVD setup with Dolby Digital would sound. The "one button turns on everything" macro feature keeps me from wielding a golf club at my appliances...same for turning everything off.

Anyway, for the price and the quality this receiver can't be beaten. It does lack a few features (such as pre-outs for all channels...also the display on the unit could be larger and easier to read) but they are mainly either negligible, rarely used features (to most home audio nut's) or something more suited to higher-end equipment. I looked at Onkyo, Pioneer, and Yamaha before making the purchase. One other main selling point to me was the 6-channel inputs for future decoders! A REAL plus that the others couldn't match (except for Yamaha).

Onkyo: Cluttered unit and run of the mill componentry. My father has one and i'm just not impressed.
Pioneer: The build and component quality isn't there...even for a low-end unit.
Yamaha: Great units!!!...and are priced a tad above my budget.

I give the Denon AVR-3200 a 4.5 due to the fantastic price, build quality, and ease of operation. I'd give it a 5 but that bass issue and lack of lower end fullness prevents me from doing so.

System: Denon AVR-3200, 4 NHT SuperOne XUs, NHT Audio Center 1, NHT SW2pi,Toshiba SD2108 DVD, Denon DP26 record player, Older RCA VHS deck, with
Monster cable/connectors and an optical Toslink for the DVD.

This is my first "mini" system and I researched it both in person and on the
web. I have an extensive collection of old LPs and have now heard sounds from
them that I never new existed! Purchased for the dual roles of pure music and
as a nice movie/av center. Other reviews in this column highly recommend the
AVR-3200 and I whole heartedly concur. Hook up was easy and programming fairly
simple. Follow the directions about not applying power till everything's in place and you will have no problems with stuff "blowing up". In spite of the comments about the remote, I like it. It works with all my IR units and makes operation much simpler. I now have one remote in place of a hand full. Love all the switching options and the Toshiba dvd sounds fantastic. Can't wait until DTS shows up! NHT's are known for demanding more power and the Denon seems more than up to the task. Perhaps this is why the NHTs sound so nice. On an initial test, the T Rex chase scene in my son's Jurasic Park (Dolby PL) VHS tape was so realistic it had me ducking. With the DVD optical 5.1 it is unbelieveable. Base from the XU's is ok but combined with the SW2pi it's an awsome duo. For the whole system (including an economical plater and top of the line 3rd generation dvd) - I spent less than I would have on a basic Bose system. Go with the Denon and you won't regret it. It is certainly the Mercedes of receivers.

PS: Purchased whole system from Greg at The Sound Approach. Factory authorized
dealer (including Denon), great prices and perfect follow thru/delivery! Highly
recommended!!

This is in response to Angie's question. I'd respond via email but i use a different program for email and my browser won't pull it up automatically when i click on an email link...and i promise not to skew the ratings by posting repeatedly.....after this:
I ordered the 3200 from Uncle's Stereo. They're pretty flexible with pricing. My father just ordered his the other day and is having it shipped to Florida. Shipping was $25 to VA.

Also, in response to Dustin's question...i'm sure you may have tried this but if not:

The digital inputs are assignable and you have to go into the menu setup to assign them to the proper input's. I'm not familiar with the Pioneer DVD player (I purchased the Panasonic A-110) so naturally you would know more about the settings on the DVD player. I can't think of anything else that would prevent it from playing through the digital input.

Just a sidenote: A friend of mine (after hearing my receiver) purchased the AVR-2700 and i set it up for him. I must admit that it seemed much lighter and the display was awkward to view, but sounded very similar. The build quality (or heaviness/sturdiness)was quite a ways below the 3200. Regardless, i definitely think it's worth the extra $40-50 for the 3200.

Here's what i'm running:

Denon AVR-3200
Klipsch KG .5 Fronts
Klipsch SW-8 Subwoofer
Boston Acoustic Center Channel (may return for a B&W CC3, not real happy with it)
Advent rear channel surrounds (old speakers, but they're adequate for the time being)

Considering the low-end speakers i'm using it still sounds incredible.

After owning this receiver for a few weeks i'm upping my rating to a 5 with the caveat that a subwoofer is hooked to the system.

The Denon 3200 is an excellent home theatre receiver, the Dolby Digital sound blew me away. That didn't surprise me because Denon is known to have great HT, if you don't believe me read all the reviews on this sight. I also love the 5ch stereo mode, there is nothing else like it in this price range. You can keep the rest of the DSP's (I mean all of them Yamaha & Sony included), I do not prefer to listen to any of them. I do have a few complaints though, which is why I can not give this receiver 5 stars. First my biggest complaint, 2ch stereo is not the greatest. I previously owned a Marantz SR-92 (in fact I still have it) and the 2ch stereo sounded much much better. I was going to sell but now I am thinking of setting it up as my stereo for music. My second problem is the bass, which I fixed. When setting up my sub with the directions given (connecting my sub to the bass output on the denon) the bass was not as good and made the controls on my sub useless. I did not like the bass options located on the denon so I made an alteration. My Marantz had 5ch pre in and outs and I hooked my sub in to the ins and back to the sub using my outs. I figured I could do the same for my Denon (because I only use the two main channel ins and outs). After doing this the bass was much better, you can't test it in the test mode but I control my bass using my sub. My only problem is if I decide to get DTS or other 6ch input I can no longer have this set up. My third complaint is a small one, I love the sleep mode on my Marantz, Denon does not have this function (Oh well). Another complaint I often here but not agree with is the digital inputs. This unit has the same amount as others at this price range and if you really need more you can get the Digital Director from MSB for $399. Overall this is a great receiver for the money, if anyone has any suggestions for the 2ch stereo problem (adding an external amp) please let me know. That is the only thing holding me back from giving this unit 5 stars!!

I used to sell high end audio/video years ago and liked the the Denon product back then-so I thought this would have been a great buy. The unit looks clean on the exterior, and hook-ups where simple. Then the headaches began. I didn't like the fack that all audio is defaulted to analog. When I pressed the Digital/Analog button on the panel it immediatly went to error mode.- So great, I had to actually crack open a manual to understand how to use the unit- no problem, right? Wrong? I read hundreds of manuals, but this one made me feel like a novice. There is limited explinations on the functions of features- it states to refer to specific numbered diagrams that are sparaticlly numbered, ie trying to program the remote. I have all high-end equipment that is name brand and the only unit I could get to program wass the Sony XBR2 TV. When you do get the digital feature up, which has to be done through on screen functions, the fun begins. I love DVDs and all of the special features. The unit remains in "safe" mode for a good five to ten seconds before Dolby Digital "kicks" in. When you access the special features-which many are not in DD there is no audio at all unless you switch the audio to analog Dolbly Surround Sound-
I mainly bought this unit for my DVD collection-if I can't fully enjoy every aspect down to the background effects on the DVD menu I feel robbed. I know this is "stupid" but, the DVDmaniacs know what I mean when you get someone who has never enjoyed a DVD movie and all of the bells and whistles to fully experience DVD for the first time. Last comment the audio is flat and tinty.
This unit is for those out there who don't care if everything is not perfect.

This is the first quality unit I've purchased soi have nothing to compare it to. I purchased it for music and HT. The front speakers are NHT Super Twos and Super Ones for the rears. The sound for music is great, but I would have to agree with many of the other persons who bought this unit that it is somewhat difficult and cumbersome to program. I still haven't figured out how to get it in DD mode when watching a DVD. I had the same error message as a previous reader. However, even in analog the system puts out great sound like in the opening scene of Lost In Space.
I purchased the system (receiver and 5 NHT speakers) from Uncle's in NYC for under $2K. I hope I don't need authorized service.

Except for the problem engaging the DD, I like the system. I didn't test others, though. The remote is somewhat confusing also, but that's secondary to the listening.

I've been both pleasantly surprised, and disappointed by my experience with the AVR-3200. The Prologic surround effects are superior to my old AVR-2500, but the unit does suffer from lack of bass. I have set my L/R front speakers to large, center to large, and subwoofer off. It doesn't matter, even on music in stereo mode from CD it doesn't sound like the mains get frequencies below 70Hz or so. It is really noticeable in movies like Jurassic Park or Stargate, you don't hear anything down low. For what its worth, my mains are Mirage SM-3s, which go down to 37 Hz, so its not the speakers. They also worked very well on the old 2500. I guess the engineers assumed everyone using the unit would have a subwoofer in their system, and I haven't made that plunge yet.
I intend to return my 3200 for a Yamaha 995.

I've had this receiver for a few weeks now and I'm happy with it. You can buy it mailorder for around $650. I bought it locally for $775 which to me
was an acceptable markup.

I'm not going to spend much space comparing the Denon's sound quality to
that of other receivers in its price range. That's something readers should
do during their auditions.

Anyway...let's get started:


The basics:
Amplifier: 85 watts/channel x 5 (8 ohms)
105 watts/channel x 2 (8 ohms)
Binding posts w/ bi-wire posts for front and center
Dolby Digital decoder
Inputs/Outputs: 7 audio inputs, 4 S-VIDEO/composite inputs,
3 S-VIDEO/composite outputs
5.1 inputs for external decoder
Pre-outs for L,C,R and sub (no surround pre-outs)
Digital Inputs: 1 coax, 1 optical, 1 RF
8 overall sound modes incl 5-ch stereo, Matrix, and 4 DSP fields
Cinema EQ, Dynamic Range Compression (DD), Dialog Normalization (DD)
Learning remote (maximum of 26 codes can be learned)


The Good:
- 5 channel stereo. Before trying this mode, I was sure it was just
another annoying gimmicky surround field. I was wrong. IMHO, this
mode alone is worth $150. That is, had the Denon cost $150 more, I
still would have taken it home.

- Independent channel level control in addition to the master volume
For me this is useful because one of my rear speakers is closer
to the listening area than the other.

- Digital inputs are assignable

- Volume control is linear. Most receivers I've played with (including
my old JVC) don't have a linear volume control. That is, if you were
to plot the "output level" vs "knob position", the slope would not be
constant. This can make it hard to fine-adjust the volume. The
3200 has sidestepped this by providing a digital volume control that
displays output level in decibels. The user can manipulate the volume
in 1db increments (range: -60db to +18db).

- A true mute function that turns off the amplifier. My aforementioned
JVC's mute function would apparently set the volume to nil but leave
the amplifier active. If you listened closely, you could still barely
hear audio even when muted. Not so with the Denon - you can hear the
amplifier relay(s) switch off when mute is selected.

- There's not much that can't be configured and controlled using the
remote. So far as I can tell, only input attenuation (provides a -6db
adjustment for inputs that are too strong) and tone controls require
access to the front panel. This means you can configure the receiver
from your listening position.

- I'm not big on aesthetics but the Denon presents a simple, uncluttered
appearance. Fewer buttons, in my opinion, means fewer things to go
wrong in the future.


The Not-So-Good:
- Bass output is anemic at times. Dolby Digital and Pro-logic are fine.
5-channel stereo is generally fine. The other DSP modes, if you use them
(I don't), are noticibly lacking in bass at lower volumes (say, -40db
and below). A 'loudness' control would be useful here. I have dual
subwoofers but I don't like to crank the volume up on those because it
doesn't sound natural near the crossover point.

- On-screen display seems to be required for setup. The receiver DOES
echo some things to its LED display as they're being changed but not
enough to be used stand-alone (ie. it does not echo which menu option
is currently highlighted). One wonders how much more difficult it
would have been to include rudimentary support for those of us who don't
want to have to turn on the TV to tell the receiver that we've
repositioned the speakers.

- The little door protecting the remote's setup keys seems fragile. The
door is held shut by a tiny plastic "nub" that I suspect will get worn
away after time. I'm considering coating the "nub" with a tiny drop of
epoxy to offer some protection from wear (remembering to let the epoxy
dry completely before closing the door!)

- Limited number of digital inputs.

- No pre-amp output for surround channels. I don't suspect I'd have need
of this feature anytime soon but again, one wonders why Denon chose not
to include it. Omitting it couldn't have saved too much money.

- My unit's amplifier has a hiss on all channels that is slightly audible
if you're a few inches from the tweeter while nothing is playing.
Certainly not annoying since you can't hear it if you're more than a
foot from the speaker but I'm going to talk to my dealer anyway.

- No equalizer other than basic bass/treble controls. This seems to be
the norm for receivers nowadays though I'm not sure why. Seems to me
that a 3- or 5-band equalizer could help users deal with room and/or
speaker problems.

- The remote is not backlit. Instead, several of the keys glow in the
dark after exposure to light. Quite bright initially (!!) but it
quickly drops off. By the end of a movie, the glow is rather dim.
Fortunately, the buttons are shaped so that you should be able to
identify say, the volume control, with your eyes closed.


Other observations:
- I'm not a big user of learning remotes and this remote is no exception.
I have not used its learning capabilities so I won't comment on them.

- Radio station presets are stored in 4 groups of 10 (A, B, C and D).
Within each group, presets are accessed sequentially. In my area,
there are only 4 or 5 stations of interest so this is a non-issue for
me. Could be an annoyance in an area with dozens of stations though.


Conclusions:
For me, it was a decision between the Denon 3200 and Yamaha 995. They
are both fine units for roughly the same price. In my auditions, the
Yamaha produced better bass output than the 3200 and it has more digital
inputs IIRC. Yamaha also has built-in DTS if that floats your boat.
Right now, DTS is pretty much a non-issue for me.

On the other hand, since I listen to music 50% of the time, the Denon's
5-channel mode is a big plus. Add to that Yamaha's...umm...unique
remote and I walked away with the Denon 3200.

Setup:
Denon 3200
Mains: Def Tech ProTower 400s
Center: Def Tech ProCenter C2
Surround: Def Tech Bi-polar BP2Xs

Five stars right from the start. My only complaint is there is no pre-outs for the surround channels, but are they even really needed. No bass, I don't think so. I'm running mine to bi-wired Paradigm Studio 100's and the is bass lots of it. This thing is musical sounds as good as alot of seperates. This thing will cleanly drive my studio as at over 100db and when I had Cerwin Vegas I could hit 120db, if this doesn'tr count as cranked up, you can't hear. I admit the controls and remote are my favorite the is better on the market now, but buy this unit for it's great sound quality not for the remote.