7.1 HT under about 3k

I realize you want advice on this matter, but let me start the discussion by asking you why you want 7.1, as opposed to 5.1. The 7.1 format requires more speakers and more amplification channels (all of which means more money), with very little or nothing that improves over 5.1.

DVD releases for the vast majority of movies are in 5.1, and ALL of the audio-only releases (SACD & DVD-A) are 5.1. The consensus of opinion among Hollywood recording engineers is that they see little likelihood that 7.1 will supplant 5.1. For a more informed opinion on this matter, see the following link from Bryston's website which contains commentary by Dennis Sands, one of Hollywood's leading soundtrack engineers:
http://www.bryston.ca/newsletters/64_files/vol6is4.html

And for an additional point of view, click here, and then scan down to the middle article titled "Encode vs. Decode":
http://www.bryston.ca/newsletters/55_files/vol5is5.html

Obviously, it is your decision whether to implelemt 7.1 rather than 5.1, but if you are just starting out and have a budget of $3k or less (which is not a lot for a full HT system), you will get a lot more "bang for your buck" by starting with 5.1 and upgrading at a later date. Rather than buying MORE speakers on your budget, I'd recommend getting BETTER speakers for your system, driven by better amplication, as you indicate that you also want the system to be your primary audio playback system.

Thanks Sdcampbell. All input is valuable to me.

I didn't realize all of that, I was just assuming that 7.1 was the latest technology and it would become "standard". I'll give the 5.1 vs 7.1 question more consideration.

Just wanted to point out also, that the budget is for the HT proc only, speakers will get separate consideration.

Point noted -- $3k for the HT processing/amplification only is much more realistic. The concluding point I should have made in my first post is: trust your own ears. Ultimately, what YOU like is more important than adhering to the "prevailing wisdom".

6.1 and 7.1 are alot more involving than 5.1, yes it is more money and effort, but isnt your pleasure worth it in the end? These systems also will do a very good job at adding the extra material to the back channels from 5.1, so really everything can be 7.1 and is in the end alot more involving. I sometimes question why folks push 5.1, yes there are valid points to consider, but it also makes me think they bought a good 5.1 and cant or wont go to 7.1
anyways it is all just opinion in the end.
Trust your ears and enjoy whatever you decide.