I know it's a bit more money, but I'd agree that you really look into some Denon gear from Ecost.

The AVR 1804 receiver and DVD-2200 look like a darn good deal to me. That will give you full 5.1 surround for both movies AND music. The DVD-2200 plays CD's, DVD's, SACD's, as well as DVD-A's.

Speakers for a room that size...assuming you want some Axioms:

M60ti or M50ti for your main channels
VP150 for your center channel
and QS8 surrounds.

And of course a Hsu subwoofer. Probably the STF-2 would suit your needs very well.

With this setup you'll have full 5.1 surround for your DVD's, excellent 2 channel audio for your standard 2 channel sources, and 5.1 surround for any SACD or DVD-A titles you pick up. (Such as Pink Floyd's DSOTM, and Elton John's Goodbye Yellowbrick Road)

It's not a small amount of money, but much like your last system lasted you many, many years - this one would too.

Consider it an investment in your entertainment for the next 10 years.

fyi...just so you know we're not totally Axiom biased, you should also try and listen to some Ascend Acoustics, B&W 700 series, Energy Veritas, Thiel, and Definitive Technology speakers. Those are just a few other brands that I've heard and enjoyed. (Be warned though, most of them don't have the buyer friendly prices that Axiom has though!)