What do I need for my sound system

Since you want both movies and music, you might as well find a receiver for 1500. I think the an Arcam AVR300 is right around your budget. Most receivers over the 1k mark will do an excellent with movies. Since your room is small, a receiver will be more than adequate for watching movies. From previous research, i know the Arcam receivers are very good for 2 channel music. With the receivers, if you want more power, you can always add a 2, 3, or even 5 channel amp later down the road.

I listen to movies in 2.1 sound and have no reason to go 5.1 for now. Saki70 has the right idea. Get a self biasing el34 tube amp with subwoofer output. Consonance and Jolida come to mind in this price range along with the Prima Luna. Phil Brady.

LDT - IMO, don't limit yourself to just 2 channels. Especially if you watch movies. Whats good for the goose isn't always good for the gander.

There are many pre/pro units on the market that actually have good performance; worthy of music listening. The AVR 300 isn't a half bad start either. You'll get the needed channels for movies, stereo and/or multichannel music playback, and have the sub out for the polk. The AVR just might be a little better priced than most of the tube amps mentioned. Best of all worlds.

As for the 2ch better than multichannel thing, its best you decide for yourself. Thats like saying apples are better than pears. ????? Precisely my point, it takes one to make the other. But thats a whole nother can of worms. Lets just say you'll be supprised what a good quality, well setup MC system can do for a 2CH CD. Digital Edge-be-gone comes to mind. Its all in the setup!!! ;)

Happy listening!