Thanks for clicking

Long story short, I have roughly $7-$8k to build a home theater system with. Here's what I'm working with:
* looking for the highest quality audio/music experience I can achieve at a relatively low/chill volume (the place is small w/ no carpet and downstair neighbors)
* 5.1 system is what I’m shooting for (but open to other options)
* my main music source is Pandora through a PS3
* I watch BD and Netflix (streaming) movies from the PS3 as well
* "modern"-shaped 500sqft. living room w/ 10ft ceilings and lots of places for sound to travel
Can you guys point me in the right direction?
What % of my budget should go where?
What’s important to consider and what isn’t?
Thanks for helping out a noob. I promise to update the thread with my progress