Conventional wisdom says that buying separates is always your best bet. However, for $700 you can pick up a very nice HTiB that would probably suit your needs. Yamaha, Onkyo, Denon all make nice HTiBs. Or, you could spend $200 on a decent receiver and the rest on speakers. It's always best to spend more on speakers than the receiver depending on your situation and listening requirements. Bookshelf or floor speakers?