Help designing a home theater/listening room

With that budget I would visit a few high end audio professionals and listen to some of the rooms they have set up to get a taste for what you might like. They will help with the system synergy and all the details that will make you satisfied.

Why would you go for an integrated if it will be used for home theater?

Why would you go for an integrated?
Because HT receivers and processors don't do very well making music!
My Onkyo TX-SR876 is wonderful with Blu-Ray movies but
try to play SACD or Cds and the air comes right out of the balloon (no foolin').
Using a quality integrated for the L/R channels makes lots of sense.

All the best on your endeavor. For your budget in less you are a real do it yourself type guy, call in the pro.

Gear wise the most important IMO outside of sound is ease of use. Brands like NAD and McIntosh have a great ease of use factor. If you and the family can't use it easily it sits and gathers dust. You will appreciate a system that other family members don't have to call you in just to play a kids dvd or just to watch regular television. Of the brands you listed, I would stay away from Cambridge Audio. Great sound but not reliable in my experience.

Running a dedicated stereo with HT bypass system would be my choice. But surround sound is not that important too me. The balk of my funds would go to the stereo components and primary speakers. A good center channel but the rears and sides much less important.

It is fun and easy to spend other people's money, so above all let your ears be the judge. Good luck and post your results.

The most important investment you can do in your new room is proper acoustic design. I recommend Jeff Hedgeback, have had the pleasure of supplying equipment to a few rooms Jeff designed, there's even one here on AG. Do not underestimate the importance of a properly designed room.

Best of luck

Peter