Henry, congrats on your 'new' HT.....and your move to a new home.
i'm no expert on processors, although i would very strongly recommend auditioning the 5.1 analog pass-thru in your 2-channel system before trusting it's naturalness for SACD multi-channel. all the so called analog pass-thru's i have auditioned (admittedly a few years back) sounded like sh*t. if you are looking to really enjoy multi-channel SACD you need to feel good about it.
as i own the JVC RS-1/HD1 i applaud your choice there. it is simply amazing for the money. you will need very good light control and dark walls for optimal preformance.
if you have not checked out 2.35-1 constant height; i might recommend it. it will really make the visual HT experience more involving. there is nothing like a very 'big' and wide screen to suck you in.
check out this forum for details. i use a 115" x 49" dalite 2:35-1 screen in my HT room and love it. if you go with 2:35-1 you will need a video processor to stretch the picture vertically and then a lens to stretch it back horizontally. a bit of hassel and dollars but worth it to me.