Upgrade the speakers or upgrade the receiver?

dump the denon while you can still get a few hundred bux for it and get the arcam avr200 or avr300....it will be like night and day

If your Denon has pre-outs, I'd get a seperate amplifier. If not, the receiver upgrade should come before the speakers. The Studio 60's are nice speakers for the money.

or better yet, buy an outboard amp. that denon has pre-outs. once you have a good amp you can sell the Denon 3803 and get a good pre-amp and be done with the reciever thing.

The Paradigm Studio 60s are much more capable than you know. I had a Pioneer Elite 49tx driving my 60s V.1 and for the same money on separate amp and preamp, the difference was night and day. The receiver does offer good value driving your surrounds and performing processing capabilities though. I think the preamp section of a typical HT receiver is worst than the amp section of a receiver, so as long as you have the receiver in the signal chain, your speakers are still hampered sonically.

You're not going to be happy with the Paradigm 100's if you try to drive them with a receiver.

I'd say you are wrong on both fronts. Ditch the receiver idea and go with quality separates. And later on ditch the Paradigm idea and go with quality speakers.

Oz