As someone who has dumped WAY too much money into an HT system, i would keep it simple and seperate from your HT system. Some reasonable sized monitors with a powered sub and decent 5 channel receiver will probably do everything that you want it to do and more. Besides that, you will end up upgrading your processor WAY more often that you would like.
Processor choices...
I'm in the market for a reasonbly priced processor and DVD player. My main system is Vandersteen 5's BAT VK5se and BAT VK-D5se. Amps for the front channels have not been determined but I'm leaning towards tubes. My main concern is 2 channel audio but would still like to have a pleasing home theater. I have a Rotel receiver and dvd player hooked up to a smaller TV and am wondering if a similar setup as a loop through my other equipment would still sound and look OK. Any thoughts?