For that budget you have many options.
Processor:
Anthem AVM-20 ($1800-2000 used)-
-Good 2 channel through Analog Direct (assuming nice transport and external DAC)
-near best for movies
-Anthem has modular design for continuous hard/software upgrades
Sherwood Newcastle 965 ($1500)-
-Reports say this is best buy for the money
Emotiva ($3000)
-based on Sunfire Theater Grand core
-upgraded 2 channel performance
-reports are that this is very nice for music
-lacks a few features
Amp:
Sherbourn used 7 channel ($1600 used, $2000 new)
-monoblock design
Emotiva ($2K)
-monoblock design
-talk about 5 channel version
Any used 7 channel amp ($2K)
Speakers:
B&W 700 series (never heard them) $5K depending on which ones and how many
B&W 800 series (803, 805, HTM) $7K
Onix Ref package (Ref 2, Ref 1, Ref 100) $4K
Paradigm Studio line
Von SChweikert (VR4jr, LCR15, TS-150, VS sub) $6K
Onix Rocket (RS750, RSC200, RS250) $2500
Onix Rocket (Rs1000, RSC200, RS250) $3500-3800?
Energy Veritas line $6K
many many many more!
Subs (fot HT):
SVS PB2-ISD $900
SVS PB2-plus $1200
SVS PB1-plus $1100 great sub with parametric eq built in, more cosmetic options
So many more, Earthquake, Adire, REL, HSU, etc. Depends on room and desired placement (must be in corner or not)
Subs (music)
REL $2-3K??? used
Just don't forget
cables- $1000
Power conditioner- PS Audio $1-2K
Surge - Brickwall (no MOV's) 20A version is $600
I think I remember you saying more listening falls into music. I'd get some really nice floostanders that go low and use these for the music. Some go the monitor sub route and there is nothing wrong with that, but I prefer to use large speaker because they look cool
What I listed is just few to get started and get an idea on prices. I personally would start with a 5-channel system and add later on. It will save you a fe $$$ up front and there really aren't many 7.1 movies out currently. I've heard DPLIIx and it is nice FYI. Also, don't for get room treatments. What are the dimensions of the room? Basement? Windows? What type of display are you using?
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