I had the 1121 for a little while connected to the Pioneer 51 towers, 21 center, and book shelf speakers. They sounded great, especially for the money. You can get the 5 speakers at Best Buy for $285. If you don't like the sound, you can return them. They are even cheaper on newegg when on sale, but returning is an issue because newegg charges a restocking fee.
I then sold the Pioneer speaker setup to my neighbor. And I bought Emotiva speakers. They sounded very "empty" with the Pioneer vsx-1121. So much so that I sold the Pioneer receiver and bought a Yahama A-1000 receiver. They sound fantastic now, although they need more power. I'm getting an XPA-5 with the next 2 months, so that will be fine.
For my buddy, I installed a Kef KHT3005 setup. And they sound pretty good too. VERY crisp highs and the bass was adequate in his room.
BUT, first determine your listening habits (loudness, movies vs music, etc.) your room size, listening distance, etc. And then you will get better recommendations. Good luck and have fun.