Bigken,
If the Onkyo is still working, there is no reason why you can't still use it. You can simply buy a DVD player and connect it via L&R RCA analog outputs to any of the available inputs on the Onkyo (like CD). You would need to go into the menu of the DVD player and set it up for "stereo" or "PCM" output. This will force the DVD to output all sound through the L&R stereo outputs of the DVD player. So, for CDs it would play as a normal CD player. For DVDs, it would down-mix the 5.1 channel outputs to a 2-channel output.
So, if you plan to use the Onkyo, you would only need to buy a DVD/CD player and 2 speakers for now.
If you plan to stick to your $500 budget, I would suggest looking for a pair of floorstanding speakers in the $400 range and then buying a $100 (or less) DVD player. I've read plenty of reviews from folks that were very happy with the audio from a sub-$100 DVD player. I'm not one of those folks, but I'm the obsessive type!
For floorstanders, I know you can get the Athena 2.2 for $400 from www.audioadvisor.com and they come with a 30 day return policy. I would also suggest asking for $400 speaker recommendations in a new post. List the equipment you plan to use, i.e. Onkyo TX-902 and an inexpensive DVD player. You might get some great suggestions.....
Enjoy,
TIC
If the Onkyo is still working, there is no reason why you can't still use it. You can simply buy a DVD player and connect it via L&R RCA analog outputs to any of the available inputs on the Onkyo (like CD). You would need to go into the menu of the DVD player and set it up for "stereo" or "PCM" output. This will force the DVD to output all sound through the L&R stereo outputs of the DVD player. So, for CDs it would play as a normal CD player. For DVDs, it would down-mix the 5.1 channel outputs to a 2-channel output.
So, if you plan to use the Onkyo, you would only need to buy a DVD/CD player and 2 speakers for now.
If you plan to stick to your $500 budget, I would suggest looking for a pair of floorstanding speakers in the $400 range and then buying a $100 (or less) DVD player. I've read plenty of reviews from folks that were very happy with the audio from a sub-$100 DVD player. I'm not one of those folks, but I'm the obsessive type!
For floorstanders, I know you can get the Athena 2.2 for $400 from www.audioadvisor.com and they come with a 30 day return policy. I would also suggest asking for $400 speaker recommendations in a new post. List the equipment you plan to use, i.e. Onkyo TX-902 and an inexpensive DVD player. You might get some great suggestions.....
Enjoy,
TIC