Hello asmithkash,
My room had to be a little bit of both, I chose the Marantz AV8805 for the processor, Rotel RB-1590 & RB-1585 for amplification, B&W 702's for mains, and same brand & line for associated speakers, a pair of SVS PB16 ultras for subs. It is not where you are starting but similar........all things considered its been a great bang for the buck, probably a bit over your $8K price but close enough that you could draw some comparisons for your selections, you can spend much more & some less, in the end its you that has to be happy with it - Good Luck, personally I'm betting you will bust the budget but will be rewarded with smiles per hour with what comes out of it ! I did & everyone in the house is happy !