>>a QUALITY 2 channel setup is much better than 5 or more channels of mediocrity, ANY DAY!!<<
Right on. Also, just want to reiterate -- if you go to a 5 or 7 channel system for movies, most of the sound, a lot of the time, will be coming from your center channel. This means that, for a significant amount of time, you actually go from two channels to one. And the voices don't image in the center, they locate right from the center channel speaker -- no imaging. I find that disconcerting. I don't like having the sound rooted to a speaker, I like my speakers to disappear. With a good two channel system, you still get ambient sounds all around the room. What you will miss is when lazers shoot around the gallaxy, you won't get that "bullets whizzing around your head" effect. You'll miss out on a few minutes worth of action from a select group of movies and movies being what they are -- only a few of those will be worth watching.
I do recommend a sub-woofer, though. Many films use the sub-woofer enough and there's no other way to get what a sub-woofer does from two channels without a sub-woofer.
I am confident Saffy can listen to both sides of this discussion and will have more information from which to make his decision. His final decision will be stronger for having heard all sides.