Brother, can you spare some time for HT advice?

Hi. I've been a two-channel guy for years but am exploring an HT setup and could use some help. I'm thinking about a Samsung LCD TV (LNT 4671 or 5271), a Panasonic dmp-BD30 Blu-ray player and either an Onkyo TX-SR705 or the Denon AVR-988 receiver. I've also heard good things about the KEF KHT3005 surround speakers. Ideally, the receiver would have multi-room functionality so we could run a pair of speakers to an adjoining patio.

The gear would be placed in a 15x18 foot family room that's open to a kitchen about the same size, with hardwood flooring throughout. (I know, not an ideal configuration, but it's where we spend most of our time). We're about to start a remodel of both rooms that will allow us to hide cables and keep things nice and neat, but will also leave us running lean for a long while, so we're looking for gear with the most bang for the buck. Any opinions of the equipment I'm considering, or suggestions on better choices?

I'm especially intrigued by the KEF's. The company seems to pay attention to build and sound quality and the reviews are pretty glowing all around. (Plus, my wife actually liked the way they look, which is rare). I also was leaning toward the Denon receiver. Onkyo seems to offer more features for the money, but the setup and operation seem pretty daunting for a newbie and some reviews indicate that they run pretty hot.
I'd go with the Kef's you like, and the best newer Denon your budget can allow! Sound will improve with better electronics. Otherwise, an even better sounding option, would be to buy a Denon with the HD-DD and DTS Master, Audyssey, and pre-out's, and then to run an outboard amp! Otherwise, go with as much receiver you can.
Good luck. I think you'll like the combo.
No matter what they say, the Denon will be stronger, smoother, and more full bodied for relative price ranges.