You would not be at all dissapointed with that setup. Movies and music would be awesome. I have the Marantz 8400 and I love it, great clean sound and it would power those Paradigms nicely. There are a bunch up on UBID.com for $649 right now. The 8400 doesn't have all the bells and whistles of several competing receivers, instead it focuses on ease of use and functionality. I don't use many DSP modes, and auto setup for the speakers isn't a big deal for me. An additional component input might be a feature some would want but my TV only goes up to S-Video so again no worries for me at the moment.
If you went with your posted setup I think you'd be more than happy. Just email the people at SVS with you room dimensions and they'll suggest a sub. I've heard those Paradigms and was impressed. I own the Marantz and I'm impressed. I can't imagine they'd make a bad pairing, and once you throw in a nice beefy SVS sub, you'll have a killer combo that I'll bet stays with you till it's time to hand it down to the kids.
On a side note $750 does seem a little steep for the Paradigms, but not out of line or anything. Check and see if the store will do better and also call some other Paradigm dealers to get them to price it out for you on the phone so you know where you stand. If you are buying all 5 speakers at once I'm sure you'll get a deal. Tell all the shops you call that you plan to make a whole speaker set purchase and they'll treat you right.