Amplifier and Speaker Advice needed

A few years ago I sold off my JMLabs electra HT system (7.1). I switched to headphone gear and now am really missing my old set up. Unfortunately, I dont have the money to go that expensive again (not without certain divorce).

Here's my situation:
pre/pro: B&K ref30 (dated, i know)
room: an acoustical nightmare (2 story with open side wall)
room size: ~15 ft x 20 ft

$1200 now
+$800 in the next 6 months

The room is terrible, my budget is low, my pre/pro is dates so my expectations are pretty low here. What i need is amp + speaker advice. I can even start with an amp and 2 speakers for now and add more over time. so far ive been looking at a matching B&k amp (admittedly for aesthetics) + quad 12l or totem. Other option I was considering was aragon amp with a pair of small maggies.

Im concerned that I may be setting myself up for disappointment (vs my old JMLabs). Any advice would really be appreciated!

Used Vandersteen 2's & McCormack amp.
Wait until you have the money to get what you really want.Throwing a few hundred here and a few hundred there will only waste money and prolong your misery.Just my opinion.
within your budget, a used b&k amp is as good a choice as any; parasound hca is another--you can find either around $200. for speakers, i might look at either ohm walsh or mirage omnis, which aren't fussy about placement and disperse widely--they might be best able to tame your unusual room.
For a room that must be utilized as is and cannot be tamed, omni's are a very good way to go. I'd add speaks first and worry about the amp, powered sub or whatever else tickles your fancy later.
I have the Ohm Walsh and I love 'em... but as the (CURRENTLY married) original poster specified, he can only spend $1200 and that won't be enough. He can try used, but the Ohms just don't show up that often around here.

The entry-level Maggies are an excellent value, if you can make them work in your unusual room.

For the amp, I would recommend Van Alstine. You can sometimes find something used here, or also direct from them (which will include some kind of warranty), for about $500-800. Incredible price/sound ratio there.
Vandy's and the Ohms, both excellent calls!! you can't go wrong with a McCormack amp, or an older, and stellar say I, Parasound, maybe a 2200.
With your budget, you'll have to go preowned for sure but there's a lot to choose from here on Gon.

There are two preowned Rotel RMB-1075 5 channel amps for sale right now on Gon for $600.00 each. That's an excellent price. I have an RMB-1075 myself and love it. Purchased it preowned right here on Gon back in May 09. You get 120 watts/ch/8oms all channels driven with that Rotel quality and performance, toroidal transformer, British made slit-foil capacitors, etc. You can't beat it. That leaves you $600.00 for a pair of speakers. There's a pair of Martin Logan Mosaics for sale right now on Gon for $600.00. There's your $1200.00. Just a suggestion.
If you could reposition the system so that the open wall was (1) behind the listener or even (2) behind the speakers rather than to one side, that room wouldn't be that bad, in fact it might actually be good.
Thanks for the replies.

Unsound: unfortunately, i cant change walls. Turning the room has me staring down a 2 story 6ft wide stone fire place with flanking windows.

Budget change - just sold some pre-marriage junk so I have spousal approval to use the money for audio. So i can swing about $2200 for speakers/amp now.

Not much of the gear recommendations so far have really peaked my interest. At this point im looking for 1 amp and 2 speakers - choices that would double as a good HT set up when I add more speakers and power later. My usage will be about 35% music (2channel), 55% HT, 10% games.