Ok to answer the budget question
$1500ish for fronts.. i can go over it they're worth it
$1200 for center and two rear/surrounds
A Velodyne Impact 12" subwoofer is already headed my way.
So my current setup is an Onkyo TX-NR636 Receiver
2 old Polk Audio powered towers (circa 2002-3ish)
A Velodyne Impact 12" sub on the way via Amazon
I'd like to do a 5.1 surround in my living room, which is shown below in my masterful ms paint rendering. :ph34r:
The space on the right is...