Need Advice on Speaker and AVR Selection

I am excited about installing a nice HT in my living room. I have been reading many of the threads here in AVS and there is a lot of information. I have been trying to figure out what components to get to maxamize with my budget.

This is what I have:
Budget - ~$1,000 - $1,100
Living room - 20' X 25' with 18' ceiling, the back opens up to kitchen and breakfact area, right side opens up to hallway to bedrooms and partially to dinning room.
60" LG Plasma
I already ordered 2 Polk Monitor 60's to use as my front speakers.

I would like to build a 5.1 surround and later (1-2yrs) add to make it a 7.1.

I have been thinking of getting the following:
BIC F12 for the sub speaker
Polk CS10 for the center speaker

I would like to install some in-wall speakers for the left and right surround, not sure which ones, I figure I need to keep the cost at ~ $150 for the pair.

As for the reciever I have been thinking about the Pioneer VSX 1022 or 1122.

I would really appriciate some advice on the speakers and reciever.

Thanks in advance!

Anyone have any advice?

Thanks for the help.

I did look around and found a good deal for a Denon 1712. It is on sale for 270 + shipping. How does the Denon 1712 compare to the Pioneer VSX42 using a Polk speaker setup?

Well just read that the Denon 1712 is factory refurbished with 1 year warranty...so I don't know if it is worth that price being refurbished.