AVS Special Member
Join Date: Dec 2007
Location: Southern California
Mentioned: 3 Post(s)
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I would leave the TV where it is, because you may not want it any higher than it is.
You can get the Sony STR-DH130 stereo receiver for only $120.
It can be replaced by a 5.1 receiver later, and this will give you an inexpensive starter with good power.
Or you could get the Harman-Kardon AVR 700 for $230, which is 5.1.
With small children maybe you should mount a pair of speakers on the wall above/behind the TV.
You could install a solid wood shelf the same width as the TV on the wall to hold the speakers using shelf brackets.
Lay the speakers on their sides so they are just above the TV.
That will avoid using any of your limited floor space and be totally inaccessible to the rug rats...lol.
A pair of Monitor Audio BX-2 speakers are $489; I would suggest those. They are front-ported, which is what you definitely want for that setup.