ive been told the Rotel RSP-1098 is a preamp is this true if so can i use it as a home therate receiver?

The RSP 1098 is a 7.1 surround processor/pre-amp. That is a great piece of equipment, with the right other equipment will make a stellar system.

A surround system consists of a source, a receiver, and speakers in the simplest form ( not to be discounted though) This kind of set up could run as low as a $100 HTIB ( Yuck) or upwards of $10,000 US with the average running around $2,000-$5,000 US.

In more complex systems you can have almost every process separated ( hence the term separates) such as transports, DACs, DSPs, Processors, Scalers, Pre-amplifiers, and Power amplifiers. A separates system can run anywhere from ( $8,000- $100,000 and up and up. Average is somewhere around $20,000

You are on the right track to a good system the Rotel pre-amp processor you have combines all the things you need for surround sound except the Power amplifier. The first link I have included is to a Rotel amp for Five channels, this coupled with a suitable 2 channel amp ( Rotel has those too) will make a great system.

If you don't have the unit already and want a good receiver Rotel has those too. see second link.

Since you seem a little new to the Home Theater game I would recommend some light reading before you invest in a system. see third and fourth links.

Make sure to understand good interconnects, power filtration and other concerns are addressed to get the most out of your system.

The products shown are Rotel since it seems you like there products, but please listen to a gambit of systems and speaker combinations critically before you buy and after. (There is a lot of that in the first book I recommended).

Good luck and Happy Theatering!!

Short answer....as a pre-amp you would have to get amplifiers for the speakers as a pre-amp only processes the signal (a receiver has pre-amp and amplifier built in to one device).