Ok, without knowing the setup variables, like long wall vs. short wall, close seating vs. farther back seating (this all makes a HUGE DIFFERENCE BTW), I'd have no Qwams whatsoever recommending you look at the Triangle Titus(er whatever the smaller bookshelves are) speakers upfront, and whatever matching you can get for back. The Triangles, I believe use virtually NO CROSSOVER in their speaker designs, from what I've read. This should make for a much more dynamic and efficient speaker design. I also know they use higher end drivers, horn loaded (qwasi) tweeter design, porting, etc. This all leads to much migher efficience and dynamic ability than most designs, les you go much larger, multiple drivers, etc. Also, I've heard (usually I don't recommend unless I've heard/used) the Triangles are quite the neutral high end sounding audiophile speaker. Might be worth looking into.
Whatever you do, don't go with larger speakers, or you'll not really be able to get reasonably flat/accurate bass response in your small space, without seroius EQ'ing.
Sub(s)? I'd recommend serveral depending on how picky you are on space/size. Larger designs that are super on their own, are M&K MX series, paradigm Servo, Earthquake MkIV series, etc. In your smaller space, these will likely do well setup at the 1/2 point in your room for flattest response. Otherwise, if you need the sub upfront, for ease of blending, whatever, I'd look at a sub with a parametric EQ, like Infinity SW12/PSW10 etc!m More expensive are small little Velodyne's with Parametric's built in. You wan't flat accurate bass sound indeed...no peaks!
As for a basic receiver choice, apparantly, the Arcam AVR300 is supposed to be the real deal for receiver choices! Much more like separates, with lots of refinement. I know a few people who swear by it. Anyway, separates is usually better by a a lot, with more power, but then more pieces, cost, complication a bit.
Anyway, I doubt you could go wrong with this combo. That, from many years around this biz, ON A LOWER PRICE POINT, high performance system. DVD player? Denon's are good for a few bucks, which makes sense at this price point.
If you want to get another few percent better sound, you'll spend tripple,quadruple, or more!
You can look at Wilson Cub's, which are very high end, efficient, dynamic, stellar. These will be superb music/movies on the high end, at several thousand each! Still, very high end, resolved, dynamic, etc. I'd then look at something like Krell separates, krell DVD, etc.
That said, on the high end, you might want to look into not only professional consulting with system setup, if you want the best (easily 1-200% improvement in sound and accuracy) performance/setup, you'll need help! No replacment for experience, and the room, setup, acoustics,speaker/seating considerations,teaking and calibration, are 2/3's the sound easy! So consider.
On your own, I'd also recommend, on the higher budget, you look into something like a high end Rives Audio PARC combo! This will set you back several thousand, but you'll be assured accurate response, maximium dynamic range and purity! Otherwise, you'll be hearing too much of the nasty room bass sound destroying your accuracy! This must be adressed with speakers and seating considerations, acoustics, etc.
Another consideration, is looking in to some of these newer pre's with built in parametric Equalization. This greatly improves things overall. I wish more people were making pre's with these built in.
There's ton's to chose from, but there's sooooooooo many ways to do this wrong. Good luck
