Always, welcome. No, you haven't misunderstood what you read about separate components, but what you read has no factual basis. Receivers provide us with audibly flawless amplification within their power limits and using two or three separate boxes can't improve on that. Excellent receivers are available in the $400 area, such as the Pioneer 1015 and Yamaha 5890. They'll be fine in a two channel system and could be used if in the future you'd expand your M60 speaker setup to enjoy surround ambience from your stereo material, using DPLII processing.
Cables and speaker wire are commodity items which should be bought on the basis of price. Check local sources such as RadioShack, Home Depot, Walmart, etc. or online sellers such as Monoprice.com or Trianglecables.com.
Several CD/DVD players are available in the $100-$150 area which are excellent, such as the Panasonic F87. Don't overlook the convenience of a multi-disc player.
