"Lg1":
If I was in a quandry that is similiar to yours (that is, design an (almost) "no compromise" system with a $20K budget), and if it were "MY" $20K, here's what I would spend it on:
Speaker System:
Paradigm Signature 8 Towers** (Fronts..... For 2-Channel Listening With Other Speakers Switched Off, And Then The Other Speakers Switched On Again For Home Theater)
Paradigm Signature W5C (Center Channel)
Paradigm Signature ADP1 (Surrounds)
Subwoofer(s):
REL T2 (try one first just to see if a single T2 provides enough bass extension for your particular room. If so..... you're set with this subwoofer. If not, if and when your budget allows you to do so, you can add a second T2 later on. Two T2's working together should provide more than enough bass extension in your mid sized room)
Power Amplifier:
Bryston 6B SST (300 Watts x 3 @ 8 Ohms; 500 Watts x 3 @ 4 Ohms; 20 Year Warranty)
Bryston 3B SST (150 Watts x 2 @ 8 Ohms; 250 Watts x 2 @ 4 Ohms; 20 Year Warranty)
Preamplifier:
Bryston BP26 MC (Has Remote Control; Built-In Phono Stage (For Your Sumiko Blackbird); 20 Year Warranty)
Surround Sound Processor:
Integra DHC-40.1
Blu-Ray Player:
Pioneer BDP-51D (which is the one I personally own..... true.... this is last year's model, but I bought this model because of the construction that this thing has, and the performance that it offers for the money, and of course, from an audio aspect, the Wolfson DAC's doesn't hurt either..... you may still find one for below retail if you shop around, or you might find a used one for less than $200.00)
Oppo BDP-83 (STRONG alternative)
DAC:
PS Audio Digital Link III
Cables:
I am going to leave you on your own here. Pick what sounds good and what sounds right to YOUR ears.
Rack(s) & Accessories:
Don't forget to budget for these as well. And for THIS setup, power conditioning is mandatory.
Options:
If there are any funds left over, like "Macdadtexas" has stated, you could go ahead and get yourself an Apple TV to feed your 52" LCD (or Plasma) TV. I would say get a TiVo HD-XL DVR. But with a TiVo, you have to pay for TiVo Service on a monthly basis before the TiVo could function properly (personally, I have a TiVo HD-DVR (Standard Model)). With an Apple TV, if you have an "iTunes" account with Apple, you should be just fine (like in no monthly fees for example).
Good Luck and Happy Shopping......
Regards.....
--Charles--