I am looking to set up a new Home Theater system. It is in a fairly large living room with a 56" Samsung 1080p. The system will be mainly for watching movies, tv, and some music. I have a samsung bluray and use pandora through it to play my music.
I'm not a big fan of Polk products. IMHO Paradigm or NHT will offer better sound for less. Also, if you have a used/new stereo store I would go there first. It's very important to hear the speakers first.
The Onkyo makes pretty good stuff but I prefer not getting a receiver and going to separates because you find yourself needing to upgrades amps for more power, surround sound tech changes and after the initial expensive you can always start upgrading your equipment in small stages. Try used stereo stores. All that I dealt with gave you a one year upgrade option. So if you spend $500.00 bucks on something, you can go back and get $500.00 worth of credit to get something else.
Important rule of thumb is always spend the money on the best speakers you can afford. Check out diyaudio.com a great site for info.