Having just gone through this exercise with a family member, here is my advice. Since you didn't mention anything about a screen, I will assume you have that under control.
1. I would buy a used HT receiver. So much more machine for the money. Don't worry about HDMI capability for the receiver in a starter system - go for current and wattage. Pick it up, if it weighs a lot, buy it. Denon, Marantz, Onkyo, Pioneer and Yamaha all make decent HT receivers. Some Sonys sound OK too.
2. I would look for a source known for having decent redbook CD playback, get a used Denon 29XX model or higher DVD player, a used NAD or Cambridge Audio DVD player. Or, get a new Oppo DV 980H (a whopping $169 NEW). If you are getting a screen bigger than 40", you will want to get a HDMI capable player (like the Oppo) to appreciate full 1080p HD picture on up-converted DVDs. Stay away from Blueray players for now as the cost to sound quality ratio is currently way out of whack.
3. Get used speakers too if possible. I would go for full range front speakers, either high quality budget monitors with a sub or decent budget floor standers depending on your available space. One consideration, the monitor sub combo is more versatile for listening to stuff blow up in HT mode.
Get a used or new center speaker that is a decent sonic match for the two front speakers. I would not bother to go for 7.1 sound at this point, so try to find rear speakers that are a good match for the rest - but focus on getting the front pair right if music is your first love, and build the rest of your system around that. There are always a lot of B&W speakers available used online, so you could mix and match used and new models as available and within budget without going wrong. KEF makes good audio and HT speakers. Monitor Audio and Era Design are two other manufacturers that come to mind as well, and some people rave about Definitive Technology speakers for HT and Music, they sound OK but I don't like the way they look.
Finally, Aperion Audio makes a good sub for not too much maoney as well (http://www.aperionaudio.com/home.aspx).
Good luck.
1. I would buy a used HT receiver. So much more machine for the money. Don't worry about HDMI capability for the receiver in a starter system - go for current and wattage. Pick it up, if it weighs a lot, buy it. Denon, Marantz, Onkyo, Pioneer and Yamaha all make decent HT receivers. Some Sonys sound OK too.
2. I would look for a source known for having decent redbook CD playback, get a used Denon 29XX model or higher DVD player, a used NAD or Cambridge Audio DVD player. Or, get a new Oppo DV 980H (a whopping $169 NEW). If you are getting a screen bigger than 40", you will want to get a HDMI capable player (like the Oppo) to appreciate full 1080p HD picture on up-converted DVDs. Stay away from Blueray players for now as the cost to sound quality ratio is currently way out of whack.
3. Get used speakers too if possible. I would go for full range front speakers, either high quality budget monitors with a sub or decent budget floor standers depending on your available space. One consideration, the monitor sub combo is more versatile for listening to stuff blow up in HT mode.
Get a used or new center speaker that is a decent sonic match for the two front speakers. I would not bother to go for 7.1 sound at this point, so try to find rear speakers that are a good match for the rest - but focus on getting the front pair right if music is your first love, and build the rest of your system around that. There are always a lot of B&W speakers available used online, so you could mix and match used and new models as available and within budget without going wrong. KEF makes good audio and HT speakers. Monitor Audio and Era Design are two other manufacturers that come to mind as well, and some people rave about Definitive Technology speakers for HT and Music, they sound OK but I don't like the way they look.
Finally, Aperion Audio makes a good sub for not too much maoney as well (http://www.aperionaudio.com/home.aspx).
Good luck.