I currently have a LG LHT764 system hooked up to my 42" plasma for my sound. I would like to upgrade my audio system but I am not sure where to start. I can't buy it all at once so I am basically asking what to do first. Do I keep the LG amp and start adding speakers in pairs to it than end with buying a new amp. Or do I start with a new amp than slowly add the speakers to it?

Don't know the specs of the LG amp, but I'd go the route of a new receiver with the latest HDMI switching capabilities and try that out first. Without stating what speakers you have now, we have no idea what you are listening to at present, but a good receiver may just make them sound better!

hey thanks for the reply. Here is the specs for my system. Any thoughts and opinions are greatly appreciated!

Audio
XTS Pro (Digital Amplifier) •
Dolby Digital 5.1 ch Decoding •
Dolby Digital Prologic ll •
Tuner
Band FM/AM
Station Preset 50
FM Tuner Range (100kHz tuning Steps) 87.50-108.00MHz(50kHz)
AM Tuner Range (10kHz tuning Steps) 530-1720kHz
Digital Satellite Radio Tuner XM-Ready
Video
Progressive Scan •
1080i upconversation (HDMI) 1080i
Video Output Resolutions 480i/720p/1080i
Audio / Video Playback Formats
Disc Capacity 5
DVD Video (NTSC /PAL) •
DVD-Audio •
CD-R/RW •
DVD-R •
DVD-RW •
DVD+R •
DVD+RW •
MP 3 Audio •
WMA Audio •
JPEG Photo •
DivX A/V •
DVD Playback Features
Parental Lock •
Chapter Skip (REW/FWD) •
Search /Slow/Step Skip for Rev & Fwd •
Audio Playback Features
Number of Programmable Tracks 20
MP3 ID3 Tag Support •
JPEG Preview •
Programmable Play •
DVD/CD/VCD Player
Initial Language English
Amplifier/Speaker
Front Speaker Types Satellite
Subwoofer Speaker Type Standard (7 Inch)
Output Power–Front 155W x 2*
Output Power–Center 155W*
Output Power–Rear 155W x 2*
Output Power–Subwoofer 225W**
Center Speaker Type Horizontal Standing
Rear Speaker Types Satellite
Front Panel
USB (A) Port •
Rear Panel
Component Video Out •
Composite Video Out •
FM Antenna Input •
AM Antenna Input •
Speaker Output Type/Number Push-in/5
HDMI Out •
Satellite Radio Antenna Input (XM In) •
Subwoofer Output Type/Number Push-in/1

Is this an HTIB system that came bundled with the speakers? The output specs of the amp seem "overstated", and probably aren't RMS spec.

Generally, you get more immediate improvement from better speakers. But, if your receiver is actually an HTIB, it may not work like a traditional AVR to power new speakers and a sub. In that case, you would have to start with the AVR and go from there.

Do I keep the LG amp and start adding speakers in pairs to it than end with buying a new amp. Or do I start with a new amp than slowly add the speakers to it?

What's your budget? I'd probably upgrade both, as I don't think LG makes a HTIB that works with anything but LG stuff (and maybe even only with that model.)

new receiver first is what most people are saying I guess. I am thinking about spending $400 max of the receiver. any suggestions?

onkyo, denon, yamaha, etc