Until recently I had a similar setup and was quite happy...
Arcam AV8 preamp/processor($3000)
Arcam P7 multichannel amp(3000)
Vandersteen 2 Ce Signature Speakers ($1100)
Vandersteen VCC-1 Signature center channel ($600)
Sony 999es CD/DVD with Modwright Platinum Truth Mod ($1800)
Paradigm 20s or newer model surrounds ($500)
Synergistic Research Resolution Reference X2 interconnects for left, right, and center speakers ($1500)
Synergistic Research Resolution Ref. X2 speaker cables for left and right and center ($2000)
Synergistic Research Master Coupler Active X2 power cords for amp, preamp, and cd/dvd player ($1000)
Transparent Reference Digital cable ($600)
As you want to upgrade, the Arcam AV8 and P7 will provide a good starting point and the cables will make a lot of different setups really shine. The Sony 999ES with Modwright Platinum Truth mods is amazing. The Vandersteens will be easy to sell later on and the Transparent Reference digital cable is really tough to beat for only $600 on audiogon. Later on you can also add a sub if you want. This system will give you awesome movies and pretty darn good 2 channel.
Arcam AV8 preamp/processor($3000)
Arcam P7 multichannel amp(3000)
Vandersteen 2 Ce Signature Speakers ($1100)
Vandersteen VCC-1 Signature center channel ($600)
Sony 999es CD/DVD with Modwright Platinum Truth Mod ($1800)
Paradigm 20s or newer model surrounds ($500)
Synergistic Research Resolution Reference X2 interconnects for left, right, and center speakers ($1500)
Synergistic Research Resolution Ref. X2 speaker cables for left and right and center ($2000)
Synergistic Research Master Coupler Active X2 power cords for amp, preamp, and cd/dvd player ($1000)
Transparent Reference Digital cable ($600)
As you want to upgrade, the Arcam AV8 and P7 will provide a good starting point and the cables will make a lot of different setups really shine. The Sony 999ES with Modwright Platinum Truth mods is amazing. The Vandersteens will be easy to sell later on and the Transparent Reference digital cable is really tough to beat for only $600 on audiogon. Later on you can also add a sub if you want. This system will give you awesome movies and pretty darn good 2 channel.