The room: the ceilings are 8ft high and the couch and chair are situated 6-7ft away from the TV. At present time, I only have the TV (Sony HD 42" Bravia.) Please see attachment. The room is rectangular in shape and open to the kitchen, but is seperated by a granite breakfast bar, so the apartment is wide open.
Can you reorient the layout to have the TV on the far right wall, with your back to the kitchen? Lengthwise setup is usually recommended,
AND having your ears against any boundary is a bad thing (where muddy bass collects, and also having reflective issues, whether due to inadequate delay or great strength).
Budget: $3,500 for Receiver, CD Player, Blue Ray DVD Player, Speakers, and an IPOD dock that I can run through the receiver (if that's possible.)
Fantastic budget. This is easy. Speakers Speakers Speakers Speakers Speakers Speakers. Go listen to them. In the case that you're afraid dealers won't take you seriously, bring notepad, spl meter, and your favorite discs. Listen to as many as possible before your head blows up. Mine blew up at around 25 pairs. The rest is easy, believe it or not. Speakers are just about everything.
For your other considerations, buy your cabling at Monoprice. Yep, I just saved you hundreds. For your remote, you can also consider the URC RF20/blaster system for $80. I prefer it to every Harmony made, but that's just me. BDP, get the Panasonic BD60 (or BD80 if nonHDMI receiver). It will offer you the best BD PQ for the dollar, let alone the host of other things you benefit from by purchasing from the company that owns all of the BD patents. If thinking about SACD/DVDA, look towards Oppo for mebbe double the price.
As for nibhaz's take on #2, I say forget VP entirely, don't worry about connections (they all have plenty, except the entry level, but you have a nice budget). Honestly, EQ is by far and away the most important thing to me in choosing receiver/pre. (For instance, if I had $$$$ I'd get the ARC eq in Anthem, less $$$$ mebbe try Trinnov with Outlaw, and less $$$ the Audyssey MEQ XT that I have now). I'm not saying the others are superior, but I would research for sure, for I have been maintaining that good autoEQ is the most value rich feature in a receiver for a while now. For everything else means little to me. As long as the amp is adequate or it at least has preouts.
Audio or HT: Both are equally important, which is why I am having such a hard time deciding which manufacturers to go with. I need some guidance. I listen to everything from Pink Floyd to Rush to Sinatra to classical, so sound quality is perhaps my highest priority.
Speakers Speakers Speakers Speakers. You might consider acoustical panels, whether DIY or not.
I will be buying the system piece meal, so any advice on the-order-in-which-to-buy would be helpful. As I said, I already have the TV, so what's next? And then?
I really want to place a heavy emphasis on buying the best components for the money, which is why I am avoiding an out-of-the-box system. I am really stuck on whether or not to go with floor standing speakers or bookshelf speakers on stands. And if bookshelf, one sub or two?
Speakers Speakers Speakers Speakers. Later add a sub. you can always decide if you want a second one later. You will be afforded plenty of time to think about it, and research.
A couple of noob questions. I notice speakers advertised with the cones exposed (no grille.) Do you folks keep the grilles off your speakers? Does it make a difference in the sound or is it purely aesthetic?
Aesthetic.
So there it is. I am building a $3,500 system (All HDMI) that I want to be kick-*** both for music listening AND HT. The only thing I know for certain is I'll tie it all together with Logitech's Harmony One universal remote, but as for individual components and speakers, I'm flat out stuck.
See above.
Based on the information and attachment provided, I'd really appreciate any advice or guidance you folks you offer. I've been reading everything I can find, but the more I read the more confusing it gets.
You'll be just fine. Trust me on that.