First of all: what do you plan on doing the most with your system?
If the primary use was music, I would seriously invest in a
quality 2.1 sound system. Why you ask?
I've been down the road you are on right now. I started out with a $300 Yamaha HTIB with a decent receiver and 6 speakers (5 satellites, one subwoofer). The first time I powered it up and started playing "Saving Private Ryan", I was disappointed. I felt like I was jipped. Since then, I've upgraded everything and who knows how many hours and dollars I've thrown at my obsession; but I can tell you more realistic ventures that will not leave you feeling underwhelmed.
So... if you
need surround, we can do that too. Just keep in mind, with a good 2.1 setup, you can upgrade to a 5.1 that is good later on down the road. If you get an
acceptable 5.1 system, and decide to upgrade, it'll just be more money. How much is depending on what you are after.
But, I'm going to focus on 2.1 (I can do a 5.1 later if you want).
You have an LCD TV, a Blu-Ray player, and some kind of game console(s).
The receiver is going to be the brain of your A/V operation; depending on what you really need, we can modify the list later.
For A/V use, I'd recommend the Yamaha RX-V661; It does not support 1080p/24 or HDMI 1.3 (afaik) but it does switch it's 2 HDMI inputs, and has pre-outs for expandability. You can find these for as low as $250.
Another option is the Pioneer VSX 1018 for as low as $400, but this leaves you with less money for speakers.
As far as speakers, you can get the Boston Acoustic P260's for $400.
http://www.bostonacoustics.com/-CS-226-Floorstanding-Speaker-P260.aspx
If you want a bit cheaper on the speakers, the HS 40's sound good for $200.
http://www.bostonacoustics.com/HS-40-P162.aspx
HS 50's have a bit bigger woofer, but it'll cost about $300 for a pair:
http://www.bostonacoustics.com/HS-50-P161.aspx
Now, you can find Boston's cheaper elsewhere I assume. But they are very good speakers, and the HS 40's are small enough to fit where ever you need them, but still fill the room with great sound: I've heard them in person.
Subwoofer: Dayton SUB-120. Found so far as low as $130.
So for $780 (or there abouts) you have the RX-V661, the P260's, and the Dayton 12" sub. Not really a bad setup in my book.
OR you can punt back and get the HS 40's instead of the P260's and keep everything else the same for $580.