Help me spend some $$$$$

Believe me if you were getting hammered for shipping on almost every product that you buy like me you would be sorry too. I can see the beach from my house though,hope that makes you feel better ,oh by the way the forecast for today is Partly cloudy with the temp of 90. Cheers!!!!!

I'd go Denon with the Klipsch's. Also, consider that the Klipsch's will not sound as good sitting or listening off-axis! The horns are very directional, and focus sound. On-axis, with the right tonality and matching equip, they are very dyamnic as passive speakers, with very good presence -excellent for movies, and descent for a variety of music, with strong dynamics, efficiency and good detail. They actually, BTW, do best with tube gear in the system! - For the record.
So, just consider. If you're music first, get a tube integrated into the sytsem for 2 channel. Also, the Denon's Audyssey and warm smooth tonal balance work best with Klipsch's here, as a receiver line. Yeah, I like the Denon match there.
Another geat dynamic choice for movies/music are the powered sub tower's from Def Tech and Boston! Clear dynamic sound with the built in powered woofers, that sound much better off-axis, and moving around the house. Pluse these speakers sound very dynamic and strong due to the built in amp in the woofers.
Options...

Oh the nostalgia of the RF83 and denon package! That was my version 2 home theater system (now at version 5). That system now resides hapily in my neighbors basement.. My only advise is to start somewhere, lay of the forums and hope there is a upgrade bug vaccine on the horizon. Enjoy!

Lots of valuable suggestions so far. The "what sounds good to you" suggestion is truly the last word regardless of what you read anywhere. Unfortunately, with the vanishing brick and mortar stores available to audition these products your/we're left with reviews suggestions and most importantly personal comparative experiences such as Docrobbi has done. You may notice he didn't get into the this is better than that talk. I'm guessing he's made some good choices which simply got better with every upgrade.

I'm on my second upgrade from 5.1 Integra/Sony/Triangle to a Full Pioneer Elite 7.1 HDMI, Blueray , Plasma,/Triangle system.

IMO the Integra/Onkyo was my choice for a linear solid state receiver in my 5.1 system. The Arcam had a slightly more refined sound but lacked the HT controls of the day. for my 7.1 system I was able to audition the Arcam, Marantz, Integra, and Denon, in the same location. I auditioned the Sony, Pioneer, Denon, and Nad, in another location. Not exactly a scientific comparison but it didn't need to be. The class D Pioneer Elite was a clear favorite and made system integration very simple. My choice for a linear amplified receiver would be the Integra/Onkyo.

You'll notice in the audio and HT world there are more speaker systems than any other component. That's because speakers are so critical in your perceived sound, or what you want you system to sound like. Fortunately, with seven channels a speakers attributes need not be as critical as with a two channel system. Here again, "what sounds good to you" is key. Keep in mind the sensitivity specification, the higher the number the easier the load on a receivers smallish power supply.

No room is too small for 7.1 with room correction. I typically suggest seven matching smaller two way speakers and a real subwoofer like a Velodyne or JL.