AVS Special Member
Join Date: Jan 2011
Location: Fort Worth, Texas
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I understand 5.1 on a budget, been there many years ago. Try to buy a Denon or Yamaha(there are other stable brands) HD AVR that has the most power (WPC) for your budget. Later when you can afford to upgrade your speakers you have the power to do this. My AVR I have now is a bit more expensive but I can use it as a Pre/Pro and hook up a seperate amp with more power to it. For the amount you have to spend you will have to settle for entry level equipment that will start out OK in the new room. Better then a flatt screen speakers. Do move the sofa in front of the TV so when you set in the center of the sofa and you are looking at the center of the TV.
You really need to go listen to some speakers you can afford and decide what brand sounds the best for your budget. Blurays HD audio HDMI will demand a lot out of the AVR amps. Do Not stack anything on top of your AVR or amps and in some cases install a fan to keep them cool. Jdsmoothie posted some good advice for the budget you have to work with. I can't see clearly what the logo is one the speaker grill in the ceiling. I would remove one and look at it (on the back there should be it's specs) to see what ohmn and watts per channel it requires. Good Luck welcome to the forum. Do a search here as AVS has a list of AVR they have bench tested.... a good read to learn about the good and the not so good on AVR's.
Klipsch Cornwall I,C7,RS3-II
Klipsch Heresy II, KSB 1.1
Klipsch Sub 12" X3 Hafler P3000,P1000, DH330 DH110
Yamaha RX-V1900, T-1000,A-1000 Class A, GE-20 GEQ CDC-697
ReVox A-77 Mk IV Dolby, Nakamichi BX-100 PL-518X DL103R