I agree with most of the other posters. The Revel speakers should be a good match for that sized room and you can add a sub-woofer for more low end and movie effects. *I* wouldn't try to do surround in that sized room, but that's me and I am not a big surround fan. Been there, done that. I had a great surround set-up as part of my music system and I ended up separating it out and putting it in another room. If anyone can name me more than 10 movies that even *require* a surround system, I'd be surprised -- and most of the ones that do -- it is only for a few minutes here and there. So, you get a surround system for parts of about 10 movies -- and they tend to be movies I wouldn't be watching unless I want to show off my surround system.
You end up watching the Pod Race from Star Wars any time someone new comes over. It is ironic to me that people are waiting on SACD because there are only some 2,000 titles available, but then go for home theater surround systems when there are only a few movies that actually use surround. You'll be spending all your time putting your ears up to the rear surrounds wondering if you calibrated your system correctly because there's hardly ever anything coming out of them. A 2.1 system is just fine for movies. Finally, a receiver *is* a big step backwards in sonics. So, you'd be sacrificing sonics on 100% of your music listening in order to watch the pod race from Star Wars over and over. Okay, I am exaggerating a little, but not by much. Keep the gear, add a sub-woofer. Put the surround money into a good sub-woofer, a cheap one is fine for movies, but will sound like crap for music. Just my opinion.
You end up watching the Pod Race from Star Wars any time someone new comes over. It is ironic to me that people are waiting on SACD because there are only some 2,000 titles available, but then go for home theater surround systems when there are only a few movies that actually use surround. You'll be spending all your time putting your ears up to the rear surrounds wondering if you calibrated your system correctly because there's hardly ever anything coming out of them. A 2.1 system is just fine for movies. Finally, a receiver *is* a big step backwards in sonics. So, you'd be sacrificing sonics on 100% of your music listening in order to watch the pod race from Star Wars over and over. Okay, I am exaggerating a little, but not by much. Keep the gear, add a sub-woofer. Put the surround money into a good sub-woofer, a cheap one is fine for movies, but will sound like crap for music. Just my opinion.