I was pretty content with going with a SVS or HSU sub just based on everything I read here. Hearing these comments makes me feel better about this decision.
I just don't want to be considering different types of speakers, so it would help to get that narrowed down. When comparing the wall mounted paradigms (cinema) or monitor audio (radius) to something like the smaller orb audio speakers, would I be correct in assuming the paradigms/montiors would perform better? They will cost slightly more and appearance wise I'm leaning towards the wall mounted ones. I just want to make sure I don't go down the wrong direction. I would consider bookshelfs, but for this application in a very small bedroom (10X13) I need speakers that don't stick out much on the walls or take up much room. However, I want to make sure they are good enough that if I knock a wall down in my house to expand the room to 13X17 they would still work well and fill the room with sound.
The roads are bad tonight, so I didn't get a chance to go listen to the monitors.
At your price point, the SVS PB10-NSD would probably be a good choice:
http://www.svsound.com/products-sub-box-10nsd.cfm
Just remember to look carefully at dimensions of things online, as some people are surprised at how big some of the SVS products are. Also, of course, a higher model would be better, so if you manage to save enough on the main speakers, you could go to a higher model. However, I would not want to go with anything less than this subwoofer, as I do not know of any subwoofer that is less expensive that is flat down to 20 Hz, and I like having all of the bass that is in recordings (or as much as possible) to actually be reproduced. Whether you need such deep bass or not depends upon the music to which you listen (most popular music does not have much going on so low), and your personal preferences.
I have heard good things about the regular (non-subwoofer) speakers from SVS, but I have not personally heard them myself. Again, for main speakers, I recommend listening to as many things as possible, as different people have different preferences, and all speakers are audibly imperfect, so it is a question of which imperfections bother you the least.
As for the receiver, I think the particular model you mention in your opening post does not support the new audio formats on Blu-Ray. If you are going to ever have Blu-Ray, I recommend that you only buy a receiver that has all of the audio formats that are on Blu-Ray (HD Audio format support: Dolby Digital Plus, Dolby Digital TrueHD, DTS-HD High Resolution Audio and DTS-HD Master Audio). Anything else is already obsolete, though one can get a Blu-Ray player that decodes the new formats and outputs them as multichannel PCM via HDMI or as multichannel analog output via several RCA type connections. The analog method, however, means that you need to setup the system twice: Once with the receiver balance/delay settings, and once with the player's balance/delay settings.
As for the HDMI inputs, it is always possible to get an HDMI switch box to hook up more things, but it is not so easy to add new audio formats.
The least expensive receiver that I know of that has the new audio formats is the Yamaha RX-V663, though it only has two HDMI inputs:
http://www.yamaha.com/yec/products/productdetail.html?CNTID=567571&CTID=5000300
It is an excellent receiver for the money. But I wish it had more HDMI inputs.