I share walls with neighbours so this system doesnt need to produce eardrum shattering volume, but I am looking for good sound. I know the price range is quite low, but for now this is all I can realistically spend.

Appeared to be a good starter setup that won't break the bank - yet won't need to be replaced in a year. I looked at the HTIB solutions and came to the conclusion that I'd rather get decent individual items that I can add to / grow with instead of a 'meh' solution.

Receiver =
<b>Onkyo TX-SR605</b>
$380 at Amazon, free shipping
Great receiver for the price - you can grow with this one.

Speakers =
<b>Klipsch Quintet II </b>
$300 at Vanns, free shipping.
Center channel, 2 front, 2 rear...small footprint. Maybe not the best, but better than many HTIB setups

Missing is a subwoofer. Going to build one for @$275 which will put you over your limit - but you can certainly add to the solution later.

You get good speakers not because they are louder, but precisely because they sound much more distinct at lower volumes.

I think HTiB is the way to go. One thing - Onkyo HTiBs don't pass audio through - which means more wires for you.

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