Once again, Jack nails it!!

Your requirements put you in a nice place. With $1200 left in your budget after buting the M60s, you can get one of the receivers Jack mentioned. I'd suggest the Denon 2803, nice mix of features, price, power and quality. That leaves you enough for a HSU VTF-2 (or STF-2) or SVS PB1 (or 20-39 PCi). BTW - in today's HT environment, a sub is a necessity.

You will be very pleased with this mix and it will set the stage to expand to adding 2 surrounds and a center if you decide to go there (and you WILL )