Newbie Question

I am just starting out in the hi-fi realm and would very much appreciate the advice of some more seasoned audiophiles. The system that I am contemplating would be as follows.

Denon AVR 2803
Denon DVD-1200 (question on this below)
Paradigm Mini Monitors for the fronts
Paradigm CC-370 for the center channel
Paradigm Titans for the surrounds (question on this below)
Paradigm PS-1000 for the Sub

Some questions I've been grappling with:
1) Given the current (and anticipated near-term) availability of SACD's, does it make sense to spend an extra $200 to step up to the Denon DVD-2200?

2) Because my couch is right up against the wall, I have been advised to go with a directional speaker like the Titan instead of Paradigm's recommended di-polars for the surround channels. Does this make sense?

3) Do I need a line conditioner for a system at this budget level? (I plan on purchasing an LCD or plasma TV in the near future.)

4) How does a neophyte such as myself make a sensible choice for cable selection? Can it be as simple as pick a good brand and apply the 10% rule?

Any thoughts on the above questions and on the system in general would be MUCH appreciated.

Thanks.