Starting small home theater, need advice


First of all, let me apologize for my lack of knowledge. I have been reading on this site, and realize how much I don't know! So, from a newbie, my apologies.

Now for the question. I've been contemplating installing a VERY mild home theater in my small(ish) family room. (prob 15 x 20). The TV is about 10 ft from the couch, and the speakers would go alongside the TV. I'm looking at a 3.1 channel setup for now, run by a multichannel receiver, with the capability of expanding to 5.1 later. I'd like to spend around $1,000 on the setup as a whole. The primary use for the system would be TV sound (80%), movie (5%) and music (15%). In my opinion, the money is best spent on quality used equipment, rather than on a "system in a box".

My biggest question is: What brands of receiver/speakers/subwoofers should I be looking for, that combine good quality with affordability? I've been looking at the Denon/B&W range, but this may be out of my price range. I assume Denon/Harmon Kardon/Paradigm/Definitive Audio are all good. But honestly, I have little/no experience with these brands. Am I relegated to the big box stores with this price range?

I realize this is like asking a Ferrari mechanic on advice to do an oil change, but I come to you knowing the collective knowledge you all possess. Thanks in advance for all your advice.

Brian
bminchen
Definitive Technology for the front array: CLR center and
ProMonitor 800s, on this site, for $344 total.
NHT supersub for $220 on this site, variable gain and
crossover.
Used receivers with current HDMI capability are VERY rare on
this site, I wouldn't wait on one to show up. Recommend
Onkyo for the receiver, TX-NR414 would be entry level.
Buy new, get the warranty, it's only $449, get the
NR-616 if you have a little more money, it has pre-outs for
all channels, so you can add an external amp later. Onkyo
plays nice with apple music formats, their units have
network cards for internet radio.
Onkyo offers Burr Brown DACs at this price point, which I
like better than the AKM DACs Denon uses. Onkyo also offers
24/192 compatibility, if that matters to you. Don't know
much about Harmon Kardon, but I'd like to check out their
new AVR 1700 ($499). HK specs list current output @ 32
amps, showing this spec is pretty rare for a receiver, have
always heard good things about HK's amp sections.
Blue Jeans Cable sends you 3 HDMI cables @ 6', a 10' sub
cable and 3 sets of 8' speaker wire, terminated with
bananas, for $190.

Grand total is $1203. Best I can do. Estimate does not
include shipping.
Wow! Realremo, I can't begin to thank you for all your advice. I will take the time to research what you have laid out for me. Thanks so much for your time and wisdom, it is much appreciated.

Brian
Some really nice work there from Realremo! But you do have to go up to the Onkyo 717 to get the multi-channel pre-outs.
Woops, you're right, didn't look at that back panel closely enough. Yeah, I thought $650 for pre-outs was a great deal!
I took a look around and I don't think this option can be had on a new receiver for less than $800, +\-