HT speakers, sub, receiver/separates for $3500?

I initiated a thread several monts ago relating to recommendations for a modest HT system for a friend. His budget was intitially $2k, but I think I have him up to the $3k-3.5K range. My thoughts are to get speakers, a sub, and either a receiver or a pre/pro & amp for now, and let him worry about the CD and/or DVD player later as finances allow (what he has now is adequate, though not great).

Your collective prior recommendations were very much appreciated, but for some reason, I cannot recall that thread. Still, I think I retained most of the info in my noggin. ;^] Given that my friend would prefer to buy new gear from a local dealer, here are some of the brands that we have available to audition and buy.

For speakers, my friend is a big Maggie fan of old, so the MMG's are on our short list (as are the MMG C and MMG W's), but he has concerns about his toddler damaging them. I do too, but IMHO, if a kid wants to damage a speaker, he will, and if he learns to stay away (or is supervised), it shouldn't be a great threat. But, the WAF may be the trump card, and she likes smaller speakers. He wants floorstanders for up front. Other brands we have are NHT (dealer has a pair of demo ST-4's), Paradigm, Klipsch, Totem (Arro's should make the wife happy!), and Meadowlark. There are a few others, but I would call these the front runners.

For electronics, I may be able to talk him into Outlaw separates, and we may be able to find a deal on a used Rotel RSP-1066 and an adequate 5-channel amp to pair it with. But if we go the receiver route, the brands that I am most hopeful will fit the bill include Denon, Rotel, Sherwood Newcastle and NAD.

Any thoughts, comments, suggestions, would be appreciated. We are going to go on our audition spree next Wednesday.

Thanks in advance, Tom.