Hey guys,
I think I have settled on a receiver. The Yamaha rx-657, now it is just speakers.
It is between the Athena Micra 6 ($499) CAN which comes with everything (wiring, brackets, etc) or a speaker set from a Company called "Sinclair Audio". They have a nice 5.1 speaker package for $700 CAN (50% off, but they are considering all components separately... $299 for satelites, $199 for centre, $599 sub) with nothing but the speakers. For the sinclairs, I will need speaker stands & wire (another $200+).
http://www.sinclairaudio.com/products/brighton_sb540x.html
http://www.sinclairaudio.com/products/brighton_sb800w.html
I have taken a close look at the speakers, they seem to be really well made and are decent sound & build quality.
I guess I should have specified that the room I will be putting them in is 11' by 26', with speaker locations designed to fill 11' by 12'. I will want to upgrade front speakers & centre channel first and move everything back a notch to 7.1 system. I will then upgrade the sub, then the surrounds (all upgrades after I upgrade TV in a few years). For now I am looking for the best bang for the buck so I can save some play money down the road.
I have also thought of johsti's idea of the athena point 5's, but I can't find anywhere that has them set up. The cheapest I can find is $649 CAN + a Sub.
Any ideas or adivse is still welcome. The more I look, the more confused I get.