I am just trying to keep the guy within some sort of budget. Save the rear channels for later and get better surrounds, center, and sub now...

Otherwise you've got a lot to upgrade later on.
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http://ht.buol.us
2-M60s, VP180, VP150, 4-QS8s, 4-M3s, SVS 20-39PCi, DIY Sub, 8-Shakers, JVC RS45