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I like listening to high quality audio, but most of the gear that is considered audiophile grade is just so dang expensive I can't afford it. I use a denon 5.1 receiver with only two channels hooked up. For those two channels I am using these:

http://www.polkaudio.com/homeaudio/rtia/#rtia9

Prior to these I was using some cheap JBL 2-way speakers. The polks cost twice as much as my receiver, and give an excellent audio experience. At some point I will round these out by adding a powered sub.

What I am trying to say is that I think the centerpiece and heart of any stereo system are the speakers. I really think thats where you should plan on spending most of your money, everything else is secondary.

For your amp/reciever, Id scour the classifieds of audio web sites for used gear.
 
Right now I have a hodge podge of a setup. This Friday I will start cutting into some MDF for some new subs and towers.

The subs are Image Dynamics(ID) IDMax 12's in two separate ported boxes designed by ID designed for home theater use.

The towers will be using the legendary(in the car audio world) IDQ8's and ID CD2 Comp horn drivers mated to JBL horn bodies.

Everything will be running fully active crossovers and have LOTS of power feeding them. I'm looking at somewhere around 1500 watts per side :D

With this setup I'll be planting my flag firmly in the 2-channel camp.
 
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