Help choosing a 7 channel home theater set up or system

Want: - 7.1 or 7.2 channel system
Why: - To watch BR movies and television. Some PS3 too.
Budget: - I'd prefer to stay around $500 or less. Will spend more if it makes sense to.


Hi guys. I need some pointers and advice on an entry level type home theater set up. I would prefer to stay at or under $500, unless it simply makes too much sense to spend more on a better HTIB, or separate reciever + speaker build. I know HTIB's are love hate for lots of people. I'll take all advice from all providers. I'd prefer a 7.1 or 7.2 channel system.

For HTIB's I was considering one of these. I currently get 5% cash back from Chase for purchases at Amazon which knocks a few more bucks off. Plus I have a $50 GC to Amazon. That's why I'd like to keep my purchasing to Amazon, although it isn't required.

Onkyo HT-S7409 5.1-Channel Network A/V Receiver/Speaker Package - $477
http://www.amazon.com/Onkyo-HT-S7409-5-1-Channel-Networ...

Or

Onkyo HT-S5400 7.1-Channel Home Theater System - $360
http://www.amazon.com/Onkyo-HT-S5400-7-1-Channel-Theate...

From what I've read, the S7409 comes with the Onkyo TX-NR609 7.2 Channel Network THX Certified A/V Receiver which runs for about $380 all by itself. I like that cuz it means I can eventually upgrade the speakers down the road if I feel inclined to, without having to invest in a new reciever as well. The negative with this set is that it only comes with 5.1 channel speakers, and some say they aren't the greatest. With that, the system does review really well from owners, and I could always add a pair of Polk Monitor60's down the road, to get to 7.1 channel.

The S5400 is cheaper, which my wife will like, and also reviews really well. According to reviewers, the speakers are reportedly better than those that come with the S7409. The trade off is the reciever isn't as high end. Still, owners really like it, and in the end it would probably be as much as I'd need.

Being married and without a man cave, I won't be able to blast whatever I buy whenever I want to. So with that I don't want to overpsend for something I might not always use, or be able to enjoy. I'd rather take a step in now, and then if I really like surround, take some bigger steps later. So, I'm leaning toward the S7409 because of the reciever. The question is, would I be better served spending a couple hundred more and buying separate speakers and a reciever. Would the difference in quality be worth it?

My old system is a crap Sony STR-K502P that I just reconnected after taking out of a 5 year hibernation. Hooking that up got me interesting in surround again.

Thanks for all info, pointers, or advice. It is much appreciated.