I would really look at vanns deals they are having on energy speakers. I personally just bought a new denon 2112 at one call for 430, if you don't need the up scaling chip, stick with the 2112, this is actually recommended in the denon thread.
Next I bought a pair of rc-30 for 499 for my fronts, for my center a rc-lcr at 249 (this center is amazing) and for my rears I snagged an open box rc10 which sound absolutely amazing, and put out a very full sound for 199 for the pair. Not running 7.1 yet room is only 12x12, but plan on picking up an energy 10.3 s subwoofer at newegg for 200. In my basement I have a projector, and running paradigm monitor 7 with a cc-370, with a Yamaha v663, and I actually think the energy speakers sound much better . If I were you and you have the space, look at the energy rc70 at vanns.
Xbox Live- bucknuts07