Let me first start by saying I am going to have to purchase everything from newegg as I have a card with them and can take advantage of their financing. That being said, if someone were to suggest a website to me where I would save money and get an "upgraded"setup then I would consider it but will mostly be looking at newegg.
The current options I have considered:
The VSX-1121- I like that its 400 right now after the promo and is THX certified so that I could eventually take advantage of that if I ever decide to replace the speakers down the road.
Polk RM6750 with one pair of Monitor40 Series II for the fronts
Total would be roughly 750
Same receiver with
Polk CS1 Series II center channel
Polk RM 7 Satellite B (x 4)
Polk PSW10 Sub
Polk Monitor 40 Series II
Total would be roughly 840
Again I am open to other options, mostly on newegg though.
Not a large living room at all, off the top of my head I do not even think its 20 x 15.