Best Complete HomeTheater USED for $5000.00

As for "adding speakers", I recommend against it, unless they are clones for your mains. It's never good otherwise, nor believeable sonically. Tonal changes shift from side to side, and it's distracting, pulling you out of the movie. I vote away from adding mis-matched speakers, and even staying with 2.
The other choice is to get 5 matching high quality speakers, which you also like for your music needs. This is a bit more tricky. For you, I'd just do the 2 mains (no one will complain, trust me), cross over to a good pre/pro and subwoofer, and you're done.
As for projector, this is really the only way to go for high end home theater.
May I highly suggest, if you have the room, to look into used CRT front projetors! These big beasts can weigh between 110-230lbs, but still produce the best world class pic you can get basically! Black is black, best contrast, no scan lines/pixel when done right, and they're dirt cheep comparatively now.
Because they're almost obsolete new, you can pick up a superb referbished unit, or one with low hours for less than 10% of original cost most often! You can pick up a world class 720p capable projector for $1000-2500 if you look carefully. The crtcinema.com guy's, Curt Palme, and the sharktech guy's all have some good deals, back up and service what they sell, and know they're stuff.
Otherwise, your compromises are Single chip DLP "rainbows/color flash distractions/headaches for some, and "washed out blacks" for LCD. Lcos needs to come down in price, but that's a good technology substitute. Otherwise, 3 chip DLP is way expensive. Thus CRT makes the best pic for the buck, hands down...if you can deal with the size.
good luck

Clones of your main speakers would be ideal, but if you can get smaller, less
expensive speakers in the same family, you should be alright. Star Sound
makes a less expensive monitor, the APLHA -- this might be a good
candidate for your rear surrounds. If they let you demo the speakers in
home, you can listen and judge whether they blend with your Caravelles.

You will have to decide how serious you are about home theater.

One of your big decisions will be whether you want to use a home theater
receiver or go to separates -- a surround processor coupled with outboard
amplification.

>>-Think 4.1 could make sense for me - But do I under stand that it is
simply 4-channels/speakers with a feature that provide a center sound stage?
<<

Your front L & R will image in the center, locating the voices in your screen.

>>-Does the Denon mentioned take care of the graininess of the projector
image<<

One of the factors in the graininess of your image is your room size. You
want a projector that will throw an image large enough for your preferance
but looks good from your viewing position. In a 15 by 15 room, you will
likely be sitting around 10 - 12 feet away. You might want to consult with an
acoustics expert to locate your best listening position in the room. If you sit
too close, the image will look grainy. If you use the Denon 3910 via HDMI to
an HDMI equipped projector, you should get a high quality video image, but
no matter what you buy you need to sit far enough away from the screen.

>>and still allow me to play my CDs on a reasonable listening level?<<

I have heard good things about the sound of the Denon 3910, but you should
definitely try to audition it to see if you can live with its redbook playback.
Make sure the store has a return policy so you can return it. I have also heard
great things about its music playback after it has been modded by APL.

>>_What happens if I get rid of my Jadis? What 4.1 receiver could i get for
under 2k used - or I am I crazy to go there?<<

There are no 4.1 receivers. Most receivers can do up to 7.1. But, many of
them can be set to 4.1. Your decision will depend of your ears. Personally, I
would not be happy listening to two channel music with a home theater
receiver as the hub of my system.

As for receivers under 2k used, you could probably get a top of the line
Pioneer receiver, the 59Txi. You'll want to audition the Pioneer, Denon,
Marantz, Harmon Kardan and some others to see which has the sound you
prefer.

Projector ------ $3,000

Receiver ------ $2,000

Speakers ----- $1,000 (rear surrounds)

Sub-woofer --- $1,500

DVD player --- $1,200

----------------------------

$8,700

If you sell your Theta David for $1,200

Your total is somewhere around $7,500 including the projector.

You can save money by going with a cheaper sub-woofer and you should demo the Jadis against the receiver to decide whether you want to keep it or use the receiver exclusively.

Ok - interesting 7500 system
But if I sell I sell my jadis wont my 2 channel bliss go down the drain? - If I keep the Jadis can I just get away with a pre / AV?
I suppose the DVD player change is less critical - plus added value of much better picture.
Do I need to spend used 1500 on a sub woofer- if only used for movies?
What kind of quality can I expect form a used $3000 projector?
Is $1000 really necessary for used rear speakers?
Sorry if any of these are stupid questions
Saffy

you dont need a $1500 sub, nor do you need to spend 1000$ for rears, but I wont comment on projector, only to say I hope you have a very dark room for it.
I would think you could get both a sub and rears for less then $1500 total used, but I will leave it the know it alls to comment on that