Starting your speaker search
...I have bought a YAMAHA RXV-863 receiver...
First off, congrats on your new receiver, that is a very capable model from a very good company.
I heard I can't buy speakers less than 105w or the speakers will be dead..is that true?
Not true. Speakers are actually at more risk from trying to drive them to high SPL (sound pressure level) with not enough available amplifier power vice having too much. You do not want your receiver's amplifier to get into clipping/distortion attempting to achieve the desired sound level. In addition, I believe your 863 allows you to limit the max available volume, and also establish the initial power-on volume level. Two features which help protect your speakers from the wife/kids/drunk friends, as applicable.
The more important factors are the speaker's sensitivity rating (SR, expressed in dB/W) and nominal speaker resistance (8 ohm in your case). A SR value of 90 or more is good, less than 88 not so much. This will help you guage how much amplifier power is required to generate SPL . Please keep in mind a difference of only 3db in SR means twice as much amp power is needed to achieve the same SPL (what your ear hears). I would stay away from speakers with resistance of 4 ohm or less unless you intend to buy a separate power amp to connect to the 863's pre-amp outs.
. . . what are the recommended speakers for RXV-863? . . . I am not looking for too pricey stuff as this is my first set up..
If you answer these questions, forum members can provide better advice:
1) How many speakers do you intend to buy (2, 3, 5, 6 or 7)?
2) Do you intend to get a subwoofer?
3) What is your speaker budget? Purchase all now, or willing to phase in over time?
4) Briefly describe your listening room (HxWxL) and is it open floor plan or contained?
5) What is the intended use (movies/music/both)? If both, about what movie/music split do you expect (i.e. 50/50, 70/30, etc.)?
As a start, listen to as many different speakers as you can find in your area near your price range. Bring some of your own CDs, ones you are familiar with. I recommend using at least three CDs: female vocals (mids/highs), classical/jazz (dynamic range) and something with good bass.
There are several good ID (internet direct) companies to consider and most have a solid listen/return policy, since you can not preview them at a B&M store. Research them online, at forums like this--an imperfect method, but way better than no information. At most, you would risk soaking up one way shipping costs if the speakers did not work out.
Some ID speaker companies with good value reputations are: Axiom, Def Tech, PSB, Paradigm--to name but a few. I own PSB Image series and really enjoy them.
Good luck with your search,