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It will help smooth out the sub's frequency response, The 706 also gives you pre outs so you can add an external amp down the road. I really doubt the the the boundary gain feature is really going to help much, I dont usually hold much to those type of options.
 

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They pointed out that while Audyssey is an impressive system it will not smooth out and eq my sub the way an independent eq would. Which is one of the main reasons I was looking to upgrade.
They are correct, a dedicated eq on the sub is a much better option if you have the money to buy one the downside is that you wont get an upgrade to the receiver one big upgrade is pre outs end even though you think that the receiver is capable of driving all 5 or 7 channels properly that is not the case as the receiver power supply is the big limiting factor and will run out of oomph long before the amps will causing distortion and poor sound quality. Having more power from a dedicated amp on just the main channels will dramatically help with this and the sound will improve.
 

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Isn't that rather a bold, blanket statement given the lack of details known about the system in question?
Well, He has the Onkyo TX-SR506 and its not a high power receiver by any means and unless he is driving really small speakers I am sure that an upgrade would be very helpful. Even my Onkyo 805 works and sounds better now that I have my mains powered by an external amp and the 805 is by no means a slouch.
By getting an Onkyo 707 and an external amp we will have the best of both worlds.
 
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