I just want to chime in as a brand new home theater audio enthusiast -- I was going to go the htib route until I got here, and I have to say that I am *SERIOUSLY* glad that I took their advice. I paid essentially the same (~$400) for a comparable htiab setup, and got an amazingly better setup, and one that is way more future-proofed than the other options, and I know A LOT more about how it all works now. I took some extra time to learn the details of how all the pieces fit together and what each thing does, and for bargain hunting to save myself some cash... but you can easily follow the advice you get here and you will have an amazing setup.
I can't believe how much you can get for $500 these days. I am continually blown away (both literally and figuratively) by my setup, and I couldn't be happier. I know it isn't on par with the $2k - $15k systems that a lot of these guys have (my entire setup is a fraction of what some guys pay for their speaker wires...) but to my newb ears, I am really in love with my setup.
Not sure if you have a
MicroCenter in your area, but I was able to pick up my banana plugs for about $0.90 each (they are 10 cents more now, and I bought my store out of the black plugs...) but something to consider.
Also for the receiver, BestBuy has had a lot of Denons on clearance lately (or open box). I picked up my 1712 for $190 out the door. It has better audeyssy EQ and 7 amps (for a 7.1, or multi-room setup, or future options). I've seen 1612s there for ~$140.
A4L has the 1612 for $189 (refurb, like J&R). People here really like them in general, but I've never purchased from them. From what I hear their followup support is pretty top-notch.
Good luck -- and have fun!!