What is my next step?

Will the system be for TV Only? Do you wish to watch movies from a High Def Source, such as a Blu Ray? How about music? Budget?

Once you decide what your needs are, and what you want to spend, it becomes a lot easier to help you.

If you think about getting DAC be sure that it accepts Dolby since Panasonics output only Dolby (no menu choice PCM-Dolby).

I had never heard of a soundbar until I posted this thread. I did read about them and they may be a good choice for one room but I have another room with the same TV. In that room I will listen to music as well as watch TV so I probably need something better than a sound bar. I have an Oppo-95 for blu-ray but no other equipment. Probably 75% TV and 25% music. I won't be playing the music very loud and as for a budget I don't really know. What do I need to spend for a decent system? If I have to pick a number out of the air maybe $5000 for a limit. How much better of a system would I get if I went more?

I'll focus on the bedroom system since you asked about that first. Combine the speakers/sub below and a $300 Denon or Pioneer A/V receiver and for about $1100 you'll have a great sounding bedroom system for relatively not a lot of $$$. I'd highly recommend springing for a receiver that has good room correction built in as I think it's well worth whatever extra you'll spend especially since you're integrating a sub -- it can make all the difference IMO.

http://www.hsuresearch.com/products/value2pkg.html

For the bigger system, that's a bigger expense and involves music so would need to know more about what aspects of sound reproduction are most important to you (i.e. micro/macro dynamics, imaging, tonality, detail/transparency, etc.) and what type of music, volume level, and size of room would be helpful as well. Otherwise our recommendations may not be as appropriate for your particular tastes and situation. Best of luck.