Ok--I've thought a little about this, and I'd like to throw out a few ideas and clarifications. But let me know where my suggestions do not meet your needs or wants...
1. It sounds like you don't want a "home theater" set-up. (Meaning no less than 5 speakers sprawled all over your living room, to achieve that 'surround sound' experience.) From what I understand, all that you're looking for is a simple 2 channel living room system to play music and connect to your tv (for improved stereo tv sound).
(But know that this is a crucial point; if you want the ability to create a "5.1 channel home theater", consisting of no less than 5 loudspeakers within the room, then this needs to be included in your system's design. I suspect you'll need to get the wife's permission. And be honest with her; you will see the speakers; they will not be invisible; you may see cords. All those Bose ads are lying to you. Further, Bose sux anyway.) And for the record, if it were my budget and my system, I would rather get a higher quality 2 channel system than a lower quality 5.1 channel system. But I value music more than tv or movies.
2. I predict that the future of audio will be computer-based. Streaming online content, digital MP3 collections. So begin thinking that your computer (or a media server) as your central hub for media content.
3. I want you to think about this... People seem to like the idea of having a single centralized music hub. Put in a CD, and have the ability to play that CD in Rooms: A, B, or C. But I honesty don't like that idea. If I'm in my office, I don't want to have to go to my living room to change the song or cd. And if Court is in the living room, and I'm in the office--we may want to listen to different things. (Such flexible yet centralized receivers are available, but they're needlessly complex and are way too expensive.) I would rather have individual sound systems per room; these room system would have the ability to play content independently, or to link to a central hub (should you so desire).
4. Having a central hub w/o wires is difficult, expensive, and provides limited results. The only way around this is to build a house and have custom wiring--or do what Tim did and spend a year remodeling.
Apple's AirTunes may be a great solution.
So if I was in your position--looking to establish a good quality system, with the ability to expand as needed... This is what I would consider:
1. Never ever buy new audio products. Audio gear are like cars. They depreciate a buttload within the first year or two, when the actual quality of the product basically remains the same. I never buy new audio equipment; I always buy used, and let the suckers take the depreciation for me; and they're happy to do me this favor. I've never had a single problem with this practice either. This basically doubles my purchasing power. (If I had the space on this blog, I'd tell you about my final "new" audio purchase; a $1200 top-of-the-line home theater receiver that was functionally obsolete within 2 years. Two words: stupid tax.)
2. Think in terms of a nicer "living room" system, and smaller individual "bedroom" or "office" systems. (You'll need to match the size of the system (speakers) to the size of the room anyway).
3. For your main (living room) system, I would get the best speakers that I felt comfortable buying (spending). All decent amplifiers pretty much sound indistinguishable from each other. The most important component in the system are the speakers. Anyone that says anything else to you is lying. A rule of thumb has (historically) been to spend half your budget on speakers; although I'm not sure if that still applies in the digital age.
Further, this rule of thumb also gets a little fuzzy with initial lower budgets and plans of future expansion. If people are thinking of expanding, then make sure you take into account the option of a home-theater receiver (if desired) and the ability to drive low impedance (4 ohm nominal) speakers. As such, this may require more of the initial budget to be absorbed by the amp. The second most important variable in sound quality is speaker placement.
4. I would view my computer as my central music hub. Sarah needs a radio, and we can deal with that. The days of stand-alone cd players or "changers" is dead. Think in terms of computers, portable MP3 players, or DVDs. (One can easily burn DVDs full of MP3s, which will provide you an insane amount of content. This is what I'm currently doing, and it's working out very well.)
5. Think about using Apple's AirTunes to wirelessly connect your music server (computer) to your music systems. [Living room (primary), office/bedroom (secondary)].
6. Make sure that all your secondary music systems have auxiliary inputs, so that you can connect portable MP3 players, computers, or AirTunes to them.
So here's what I'd consider:
1. A refurbished
Harman/Kardon HK 3480. This is a high quality 2-channel receiver. It has a good radio, and plenty of inputs for TVs, DVD players, and Auxiliaries (computers, AirTunes, portable MP3 players). (I actually had the University get this exact model from the same vendor for my research lab; you know, for my "research". I've been pleased with it's performance.) Cost: $200. Other good options can be found from Denon or Yamaha. Onkyo may also be worth a look. (Relative to the big-box-store brands--historically, Sony is crap, Pioneer is decent, and Technics is the best of the three.)
2. I'll give you two speaker options. A lesser priced option would be the
Athena - Audition B1.2. I've got these in my lab, and they're pretty darn good for their price and size. These speakers have been pivotal in my "research". (Cost: $120.) A better, albeit more expensive option, would be the
Polk Audio Monitor 40. The MTM design will give you better sound dispersion, as well as more impressive bass response. (Cost: $245.) If it were me, I'd go with the Monitor 40s, but the Auditions also sound good. There are other good options out there; these were just two that I felt comfortable recommending (sound quality / bang for buck) with a limited amount of research. Boston Acoustic is worth a look, as is Warfdale if one feels like spending a bit more for a better product. There are tons of other good options, but space does not allow. (One could also stretch their speaker budget by assembling their own from a kit of components, although this does take a bit of basic soldering.)
3. Goto
PartsExpress.com and get their house brand of interconnects and speaker wire. Fancy cables offer you nothing. It's all snake oil. Dayton Interconnects and 16-gauge speaker cable is fine. Banana plugs may make life a little easier, but aren't necessary. This'll probably be around $50.
4. If you want office or bedroom systems, consider the
Tivoli Model Two. (Cost: $170.) The Model Two has a nice radio and an auxiliary input for a portable MP3 player or
Apple's AirTunes. You can probably get a refurbished AirTunes from Apple at a discount, if you check periodically. Other smaller bedroom/office systems are possible; it's just that I've been salivating over these Tivolis for years.
I'm confident that you'll be more than satisfied with such a system. Feel free to provide feedback if your needs are not what I anticipated.
For what it's worth--my main system consists of a car-stereo head-unit, a pre-amp, amp, and speakers. This weird set-up is totally by design. Car stereo radios outperform standard home-audio radios hands-down. The head unit is also a DVD player, which can read MP3s. So I burn massive amounts of MP3 music onto DVDs. It has a good MP3 navigation system to get from folder to folder. The pre-amp is an high quality pre-amplifier. Truth be told, I don't need this anymore, now that I'm using the (car) head unit. But it's paid for, so it's there. The amplifier is an high quality amplifier that is capable of driving electrostatic speakers, which stand about 3 feet wide, 8 feet tall, and 3 inches thick. Electrostatic speakers require massive amounts of current at a very low impedance, hence the need for such a high-current low-impedance-stable amplifier. (Check out the OmegaStar pre-amp and amp at
AvaHifi.com) The pre-amp, amp, and speakers were all bought used for less than $.50 cents on the dollar, had I bought them new. And now that we've chosen an income reduction and an expending family, I couldn't even consider getting such gear today. The car stereo head-unit was bought refurbished for about 50% off MSRP. (A returned item on a model that was being replaced--so they had to deeply discount it; found an online coupon to boot!)
Anyway--hope this helps...