I originally thought that I wanted a 2 channel system in the gameroom, but decided I might as well leave my options open. Currently the wife and 5 mo old son will be the primary listeners in that room and I don't think they care as much about sound quality as some of us.
My parents visit for a month or two at a time and I know my Dad would appreciate his own little mini-theater upstairs (it's a pretty large, quiet house) so maybe after getting it started he'll pay for the rest.
I settled on M3s with the Pioneer VSX-D711 from Costco at $179.99. Will do 5.1 DTS and has a 24 bit processor thingee. We'll see how it sounds tomorrow.
Thanks for all the expert advice, even if it did fall on deaf ears.