Onkyo st575,B&W 302's almost any DVD player & some speaker wire;hey,your in.Maybe a few hundred leftover for a budget,used Sub.--My pleasure!
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Kenwood 3080 Receiver which has DD&DTS goto to ubid or ebay aprrox $400. It has pre outs so that you can add a better amp later (which is what I've done) Speakers : Energy Take5 approx $500 or step up to (4) B&W 601's and CC6 approx $1100. I'm sure many others will have advice but keep in mind putting together a decent budget system is pretty easy. When your tastes become "more refined" alot more care will have to be put into matching high dollar components.
I just check some MK speakers...the 750THX series. The price seems to be reasonable and many review reveals they are very good polyvalent speakers.I know B&W are awesome speakers, the differences between these two are not that obvious. For receivers, in spite of your advice, I will look for either Yahama or Denon receivers. there are slighlty pricier, but more reliable I believe. Any suggestion or comment on these systems? Thanks
Personally, I dont think you can go wrong with either of these receivers but I would have to give Denon the SLIGHT edge in overall sound quality. Yamaha may have the edge in relability as I've used various Yamaha components since the early 1980's and cant remember ANY of it breaking down! Whatever your choice try to get the most up-gradeable one that you can (AC-3, DTS,etc.) and possibly THX as your speaker selection seems to indicate. Theirs plenty of receivers out there with some real bargains if you look around a bit. Good luck, and happy listening!