Is it possible to have incorrectly hooked up speakers and blown a reciever? I have a NAD t761 and I ran it for a few days through Paradigms Esprit's with no problem. Then I hooked it up to some Paradigm Ceiling speakers and when I cranked it up, the receiver went off. I turned it back on, and then I smelled smoke and saw a spark. Wouldn't this be an issue with the receiver?
Yep, it is a receiver issue, not the speakers. Check the receiver if it can drive 4 ohms speakers, I know that the t7x2 and t7x3 models are capable to do it, not sure for the t7x1 units. And also check your speakers ohms - if they are 2 ohms, then you have a problem and it can be the root cause of your problem.