Oldie, but A'gon newbie, seeks your advice

This is long and detailed but I figure the more info you have, the more you can help.

Now that the daughters' college loans and weddings are finally paid off, I'm looking forward to spending some of my money on me, and want to start with my well used but outdated a/v equipment. Much of my a/v equipment is around 12 years old. I've been reading all the HT and audio mags for 3 months (and discovered A'gon a month ago) in an attempt to familiarize myself with current technology .... but you know what they say about "a little knowledge".

The 'specs':

1. 16'w x 30'l x 8'h room with billiard table taking up about 40% of it. A/V equipment is centered on one 16' wall with seating 12-15' from that wall. Sheetrock walls and ceiling, carpet over concrete floor.
2. 30-something attitude, but 50-something body with average to above average hearing loss. I want excellent audio, but realize my hearing will bring me to the point of 'diminishing returns' with equipment quicker than some some
3. Expected use:
Video - 75% straight TV - Direct TV source, 25% movies/ concerts - mostly DVD but still have a library of Lazer discs that I occasionally watch
Audio - 80% CD, 20% vinyl
4. I live 200+ miles from any source better than Best Buy/Circuit City so I'll be buying everything on line with little-to-no chance to demo, so local brand availability is not important but quality /reliability of the equipment is.

I intend to upgrade/replace everything in 3 steps:

Step 1
- Keep 55" Mitsu big box RPTV for a year or so, then replace with Sony 60" SXRD RPTV.
- Keep current Sony HDMI dvd player until high def. DVD format battle becomes more clear and prices get realistic
- Keep current speakers: Kef 104/2 mains, Kef center and in-ceiling rears
- Keep Sony LD player
- Keep current turntable/cartridge
- Replace subwoofer
- Replace amp, pre/pro (or receiver) and cd player
- add Harmony 880 (or other) universal remote
- add XM radio tuner

Step 2 (12-18 months)
- Replace TV and purchase high def DVD player
- upgrade to HD Direct TV

Step 3 (24-36 months)
- keep Kef speakers for HT, purchase new speakers for 2 channel listening
- Replace turntable

Does this sound like a reasonable plan?
Am I replacing equipment in the right sequence?

Would like your suggestions for amp, pre/pro (or receiver) and CD player. Have a budget of around $6,000. for these 3 pieces. Also looking to spend $1,000 on a used subwoofer. Nore interested in good "musicality" than knocking my house off it's foundation What do you suggest? I know there are always concessions when you're trying to build a "do everything" system - I'd concede a little on the HT in order to have better audio.

On a recent business trip I did get a chance to demo a couple of systems at one dealer. His suggestion was Rotel RMB 1095 amp / RSP 1068 pre/pro / and Ayre CX7E source player. He said that was the best system for $6000. that he could put together based on my intended useage. I'd like your input on his suggestion as well as your own suggestions. Thanks you in advance for your help.
Northwoods- are you going to buy used or new? What don't you like about your current gear? Do you subscribe to the wires is wires school, or do you plan to budget a moderate amount for i/cs and speaker cables commensurate with your gear? Please specifcy our Sony source player. And welcome aboard.
The Rotel is an excellent choice for a processor, I have the 1068 and really like its options and flexibility,
You sound like a nice guy, so here's my advice. Stop, turn around, and run away as fast as possible.
Swampwalker - new or lightly used; a moderate amount appropriate to the quality of the equipment (I/CS and cabling budget beyond the $6,000 electronics budget); DVD player is an inexpensive Sony DVP-NS70H bought 6 months ago as something to get me by until I upgrade to high def source next year. Will then use the Sony in the bedroom.

Timrhu - Thanks for the advice, and the comic relief. I AM one of those people who usually dives head first into hobbies/interests and could easily get obsessive about my a/v system, but fortunately for me, budget constraints, other hobbies/interests, and a good intentioned wife will prevent this from happening.
Northwoods_, I agree with Timrhu. I'm a bit concerned about your room with its 8' H X 16' L X 30' W dimensions. Standard Hi Def broadcasts are still a few years away. A media format war is pending with out a clear winner or convergence foreseeable in the near future. Most current video displays won't be compatible with the up coming technology. I'm a proponent of choosing amplification after deciding on speakers. You've got some nice gear. Maybe you might want to sit tight and think about your room, (either with some serious treatment or using something like the TacT) while things get a bit sorted out.
Well lets start with the subwoofer, which I find to be a key piece for HT result ( I read your willing to give on the HT for music).

Sub suggestions;
1. Rocket UFW-12 from av123.com.
2. Axiom EP-500 ( might do a little better in that size room as far as SPL)
3. HSU- VTF3-HO; the HO part is key for musicality. This is the new "turbocharged " version which I got to demo at CES. Suprisingly musical in the 30hz frequencies considering it can play a 16 hz note.

AS far as receivers- keep in mind that the hi def DVDs will have DTS-HD and dolby trueHD audio formats for "full rez lossless audio", as as the usual; formats. So you may want your receiever of choice to be able to decode those audio formats, which most or all cannot do right now. So be sure your purchase is "upgradable" if you want to be able to have that option. Additionally you may want to have a separate audio from HT system. If not, then you have a compromise choice to make on music vs movie DVD audio technically.

CD Player- I like my Jolida CD 100A with the "level 1 modifications" from underwoodwally. It is not the best CD player out there, but it is vrey good.