I've got the 1913 running with PSB speakers. What's your budget? The image line is what I picked up, two towers, 4 surrounds, a center, and 2 klipsch subs. I would recommend picking up a 3313 right now though, as they're super cheap, and have extra features such as a phono input, more watts per channel, and multi EQ with 8 measurements as opposed to 6. I'm happy enough with my 1913 mind you, it sounds great.. but being picky a bit more power for 7.1 sound would be beneficial. Might not be as much of an issue if you're only going 5.1. Here's the link to PSB speakers, they really sound awesome IMO. http://www.psbspeakers.com/products/image
I have the denon 1913 and like it, no problems. The ebay store for wwstereo.com has the denon 1713 on sale for $350. It is only a 5.1 channel receiver but has the superior audyssey calibration and would be a good bet if 5.1 is all you need.
I don't have any input on the sound but one suggestion on the room. Take the TV out of the corner and put it in the center of the wall to the right of the picture. That will give better seating, viewing and listening angles. Hope this helps.