How do I start?

If you stick with a 2 channel system (my recommendation) you may be able to afford seperates up front( there are some nice value pieces advertised right here on Audiogon). Perhaps an intergrated amp as a compromise. You seem to be planning a long term upgrade approach. Thats fine, but having pieces is not having a system. Unless you see the most fantastic bargain you might as well hold onto your money till you can afford the system you want. More often than not the pieces that are useless by themselves will be depreciating with out use. A reciever may have the most bang for the buck, but it will certainly make it more difficult to pursue an upgrade path. At the sake of being redundant. IMHO, as you already have sources, think room, speakers, power, control and wires in that order. Good luck!

This has all been great advice. I really do appreciate all those who have responded. As an update, I'm continuing to do more research and narrow down what I really want. I've really liked the comment about knowing the room. I'll keep you all updated. Feel free to offer more advice or suggestions. Thanks,

Scott

If you want quality, dont go cheap. First dont buy home theatre in a box. Save your money for a while and get a good receiver and good front speakers. Wait till you save some more $$$$$ and get a sub.Save more, get a center channel save, save,save get rears. The PSB image line is real good, and not expensive. For wire go to Home Depot and Get their 12 or 14 guage wire off the big spool its pennies a foot and good. Also check out the RCA gold banana plugs $5 a pair , in the same aisle as the wire. And when you save a real lot of money, Get a RPTV or a Plasma. Nuff Said!