So I want the best 5.1 or 7.1 (no real preference between the 2) system including the amp/receiver for movies and gaming. My budget is about $1300. I'm not sure if an HTIAB would be good for me since I already have great players (Tosh's HD-A35 and PS3).

Thanks.

No, I would not go the HTIB route. Your budget will allow several options. You can get some good Denon/Kef combos off 6ave.com. Some people will suggest speakers from Energy, Axiom, or Ascends (those are nice). AVRs from Marantz, Denon, Yamaha and Onkyo are respectable. Budget around $300 to $500 on a receiver and the rest on speakers is a good rule of thumb. Speakers really play an important first step on SQ. You can get AVRs that are a real bargain off Accessories 4 less.com

cyphrex is right. Spend little on the AVR and a lot on speakers.

Consider a full 5.1 set and any decent name brand AVR...

http://www.svsound.com/products-sys-sbs_black.cfm