I have been amazed by the sound of this low cost receiver in both stereo and surround sound modes. I have a good collection of good receivers such as NAD T-753, Reotel RSX-965, Carver HT885. I have never thought of Denon when it comes to stereo. I bought a used Denon AVR-589 because it is so cheap but now I am surprised by its sound quality. I set the AVR-589 audio mode to "direct" and turn off the display to get the best possible sound and this receiver sounds amaziing. The sound in stereo mode is clean, clear and very low distortion. It sounds as good as my Carver and Rotel receivers. The NAD T-753 is still better but it costs 3 times more than the Denon. Surround sound mode is also impressive. All channels sound pretty dynamic and clear. I don't know how Denon manages to made good receiver for only $300.