I would buy PSB gold speakers and their center ($2000), a B&K ref 20($1000) for a processor and Sunfire's Cinema Grand ($1500) to push it. The other $500 you can spend on cables and interconnects. Next purchase would be Sony's new SACD/DVD player, when you come up with the extra dough.
How would you start with 5K?
I am getting started and want to get the most enjoyment for $5K in Home Theater. Music is key, but I cannot afford the best of both worlds. I live in an appartment so I don't want to over-do-it. I have about $5K to spend and I am planning to start with a Denon 3801 (new) and a pair of B&W 804's (used) and HTM-1 (used). I already have a Sony S550D and some speakers (nothing special) for the rear channel. With time I want to add an Amp, better sources and better surround speakers. What would you do?