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So if I want surround sound I would be looking at a new Receiver?
Ya, you need a new receiver. There are many threads in the receivers forum you should browse thru. Then you will have a better idea of what features you might want and how much it will cost. The most popular around here are Onkyo, Pioneer and Denon but Harman Kardon, Yamaha and most others are just fine too. Sony's are a bit less thought of in general but the ES line is more than adequate.
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I do not have a BluRay disc player yet.
I'd get thrown off the board if I didn't strongly suggest you get one eventually.
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On the other hand. I could buy a set of good speakers. And build a surround sound system around them later on down the road. I guess that would work.
That's what we usually recommend. When you buy a less than adequate 5.1 speaker system you invariably wind up quickly replacing it with a better one. If you do decide to go that route make sure you consider what center speaker will be available when shopping for the front pair. The fronts and center need to match as closely as possible. The sub woofer doesn't need to be from the same company and SVS, HSU, Elemental Designs and PartsExpress are the most often recommended around here.
You get more bang for the buck with bookshelf speakers than towers (a large part of the cost is the cabinet) but many, myself incuded, just like towers.
As for which speakers to get, it depends on what sounds good to you. But a quick wander thru the speaker forum will give you an idea of what we usually recommend to be considered.
Newegg.com has some real good prices on last years Polk Monitor series speakers. But it's not a good price if you don't care for the way they sound. You need to do some leg work and listen to a few before deciding otherwise the mistake could be costly.
Here are a few others:
SVS, HSU, Axiomaudio, Elementaldesigns, Theaudioinsider and
Ozhometheater for Swans's,
Aperionaudio and
Ascendaucoustics. There are many more but I can't list everything!

For in-store models my personal favorites are Infinity, Polk, Energy, Klipsch (considered very bright sounding) with Definitive Technology, Paradigm and others in the specialty stores probably out of your price range.
And of course there is the used marked if you don't mind picking something up off ebay, Audiogon.com or my favorite, craigslist. It can be tricky but the rewards can be phenomenal.
And then there are pre-packaged kits from places like
Partsexpress.com for those of you who are handy with a spanner. A lot of choices to consider.
There are receivers that can handle a 4 ohm load but I'd stick with 8 ohm speakers if you plan on using the 197 for a while.