Really nice budget system, plus it includes integrated subwoofers. I would definitely recommend integrated subs in what ever you buy as I'm in a 12x12 room and let me tell ya, one subwoofer has been nothing but a bad experience. It's too easy to hear where the bass is coming from. The benefit to the integrated subs is that they are co-located and take up less room.
I know this system is a bit over budget but, considering its an all in one package, your set. Call paul, see if you could work something out, I'm sure he'd be willing.
As far as a receiver goes, someone else will be able to better assist you, I'm personally into seperates.