Best buy sells some decent mid level stuff sometimes. I'd really push the denon 2200 dvd since it sounds great as dvd/sacd/cd and eliminates the need for a cd. You will have to spend quite a few bucks more to top it. You may even want to consider something like an underwood modified 2200 for around $1200 which will keep up with anything. You can always have the mod done later when more money appears.
If you have nothing to speak of now, you have to start somewhere. Pick you least liked piece and start upgrading there. If you are going home theater, remember to keep you center and fronts matched. Also, don't skimp on a sub-it will help to support the whole system by filling in what the speakers can't plus it will ease the load on the amp.
My final advice is 2 items: 1-buying amps, subs and speakers used is usually great. But, receivers, HT pre-amps and dvd players is more questionable which leads to #2 2-future proofing. HT receivers and dvd's seem to be upgraded every 6 months. This allows you to get great deals but makes things seem obsolete much quicker. However, if you get a 6 month old piece or a dealer demo for 1/2 price, sometimes it's worth it. Again that's why seperate can be nice. Amplifiers don't get obsolete usually which only leaves the pre to upgrade (keep in mind that the extra interconnects add up to a nice chunk of change).
