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
Running a blu ray movie's audio over digital cable instead
of HDMI, you will lose the high definition audio quality
that blu ray can deliver. high-def audio presents an easily
heard improvement that even non-audiophiles can easily
discern. Almost all of the receivers on this site are for
sale because the owners need/want HDMI, think carefully
before limiting your system in this way.
I agree that HDMI vs digital cable has little effect on TV
or over-the-air sound, but if you're a blu ray guy, you need
HDMI, or you're missing part of the experience.
My suggested alternative was based in part on the estimated use percentages originally given.

Also, I know that blu-ray and 1080p content is increasing, but isn't it still a small portion of the overall content?
I have to agree with pgawan, HDMI will offer little to nothing in the way of sound quality for 95% of your listening. For that 5% of disc based movie watching will be Blu-Ray based? If your area is anything like mine, every brick and mortar movie rental shop closed their doors in the last couple years. Meaning, if you're a Blu-Ray fan, you're buying movies.

HDMI's main benefit is thwarting piracy for content distributors. Like Blu-Ray, it won't be around forever. Save the money, by picking up a receiver with a good reputation and digital inputs. You'll lose nothing in the audio realm.
I'm a blu ray fan, and I don't have to buy them. blu ray is readily available at any number of mail-only outlets. high definition video and audio is here to stay, it isn't going anywhere. If you haven't gotten on the wagon, and don't intend to, well, OK.
I rent Blu-rays all the time from Redbox, can't beat the convenience and at $1.50 each, very cost effective. Use the iphone app and it's easy to find and reserve a title. They often run specials for free or discounted rentals.