What do you think of this home theater system?

Check out the speakers at www.rocketloudspeakers.com. Definite step over the PSB and great with the Outlaw & Hsu. They are comparing the RS-750's to $2400.00 Paradigms as well as other more expensive products and they are doing very well. There are threads on avs forum at:
http://www.avsforum.com/avs-vb/showthread.php?s=5f674d2a84bbadfdce019dd31d6b3434&threadid=151648

and Home theater talk at: http://www.hometheatertalk.com/ubb/Forum1/HTML/006428.html

The 5-speaker package with the Dipole surrounds sell for $2099.00 and this is a steal. Wally

The PSB Image's are descent enough.
If you really want some equipment FOR YOUR ROOM/SET UP however, I think there's some choices for right around your price range that might make a better HT/music chioce for your Receiver based needs...that is is you are going to stay with just a receiver to drive the speakers especially.
Receivers are limited to what they can output, especially in the dynamics department, using standard passive speakers(even more difficult in larger rooms).
My question to you would be...How big is your room(dimmensions please). You may want to consider "satalite" speakers instead of towers, depending. I mean especially with those "passive" speakers you're considering(the PSB's) using, you are definitely going to be crossing over the speakers(all of them) to 80hz/"small" setting on your receiver for movies and dynamic music anyway!(THX recommended set up). You'll get WAY stronger dynamics with the sub handling below 80hz(proper set up necessary, as with all systems),and letting the relatively weaker amplification handle the speakers above that.
Also, standard "passive" crossover speakers are mostly weak enough dynamically that they desparately need the assistance of a "powered" subwoofer to handle the demanding bass really. Infact, even with speakers with smaller built in powered woofers on the sides, I often recommend that people/clients cross over the speakers to "small" as well...just makes for better dynamic pressentation and efficiency.
If I know what the size of your room is, and the overall layout, I can recommend some just "world-beater" choices that will sound fantastic for not too much money!...tell us more about your room....
hifiguy

I will be living an apartment setting for the foreseeable future. At best, I will be able to use a second bedroom as a dedicated home theater room (so I guess dimensions would be around 15 ft. x 15 ft.?).

I only need a solidly designed HT processor which has a clean Dolby Digital 5.1 and DTS output. By adding an outboard power amp (Outlaw 755 @ 200 wpc x 5) to the 1050, I have the potential for 6 channel surround, which is probably more than I need for the foreseeable future.

I would like rather full-range main speakers for L and R as the Outlaw 1050 has a 5.1 direct bypass switch that allows me to bypass the internal bass management and DSP processing. I would use this mode to listen to highly processed, studio rock recordings which sound horrendous on my dedicated 2 channel audio system.

I've never heard the PSB Image series speakers, but what I've read suggest that they would work very well for my needs (I also like their prodigious bass response and power handling, two things my Merlin VSM-SE speakers don't do as well).

Can I ask what specific criticisms of the PSB Image series (in particular, 5T, 9C, and 2B) you may have?

Also, have you listened to the Totem Dreamcatcher 5.1 satellite / subwoofer system?

Any insights would be greatly appreciated!

Mshan:

Well then...... if that's the case, then the system that you have listed above is just fine the way it is. I live in an apartment as well, and as such, my home theater has to be on a small scale as well. I really like your home theater the way it is. If I ever move into a house, then what I am going to do then is upgrade my whole rig altogether rather than change the just a piece or two. And if I should ever do that, then I will be going from:

Panasonic CT-27SF37 Direct-View Television/Monitor
Toshiba SD-2700 DVD/CD Player (or the Pioneer Elite DV-37 Progressive Scan DVD/CD Player)
Harman/Kardon AVR-210 Audio/Video Receiver
Sennheiser HD-580 Headphones

To:

A table top rear projection HD television (45" to 50" range)
Continue to use my existing Pioneer Elite DV-37 as my DVD Player
And then upgrade to a Rotel RSP 1066 Pre/Pro and their matching RMB-1075 Multi Channel Amplifier