I am looking to purchase something thats going to give me the best of both worlds. 5.1 sound for my viewing point and 2 channel for Hi Fi sound.
I'm currently interested in either the Denon AVR 4306, approx £1500. Denon AVC-A11XV which I can get on special offer of £1875.00 along with DVD-3910.
Or
Arcam AVR 350 along with DiVA DV 137.
I would be interested in opinions to which would give me an overall better system.

ARCAM AVR350 & DV137,IS WHAT I'D GO FOR ARCAMS KNOWN FOR GOOD HIFI PRODUCTS, IHEARD THE PREVIOUS MODELS ARCAM AVR300 & 79 THEY SOUNDED GREAT,BOTH WITH MUSIC & MOVIES,WELL GOOD PROCESSING IN ARCAMS AV RECEIVERS, BRITS DO IT BETTER IN SOUND QUALITY,THAN THE JAPS.

I have the AVR300 as an all-round solution and its excellent. However in purely AV movie sound the Denon wins, I think, but then I like big noise for movies and a bit of refinement for music. So if all-round is what you want the Arcam is definately much better in stereo. The Denon just wins for movies and connectivity. My advise - get both!

Thank you all. Since my post, I did buy the Arcam AVR 350 + DV 137 along with Monitor Audio Gold Signature, oh and the latest 50" Fujitsu 58 series (only one of 20 in the country)and all I can say is WOW!!!!! I am blown away..

Thanks again guys

OK, I'm a bit envious since I'm looking for the AVR350 + DV137 combo but find it a bit to pricey (it is more expensive here in Sweden).
My day will come, but I don't know when.

Lazarus, Just go for it, you will not be dissapointed, I've had it now for nearly 9 months and I'm still at that wow factor. I've heard others since in that price range and nothing compares.
Also The plasma I have still tops any LCD I've seen.

Yes I believe you. I was looking for a Rotel receiver, when the dealer also presented the AVR350 together with the DV137. I was truly better. Now I'm looking for an occasion. The new AVR280 also seems to be close to the 350.

I've Pioneer 43" plasma that will stick around for a while.