Thanks for all your responses. The polk speakers sound like a good idea. I think I may get some OK speakers for that budget, however, a decent sub-woofer may cost more than what I want to spend. The virtual surround DVD player simulates the surround effect and just requires two channels. It takes advantage of the inner-working of your ears (I think - I just do not know the details), the new BOSE 3-2-1 uses the same principle. Finally, I will just use my receiver as a pre-amp and run two spare marantz MA-6100 monoblocks as my amplifier. Feel free to provide any further ideas, specially anyone who knows about virtual surround sound.
Good listening, Salsero
Good listening, Salsero