Stuck on which upgrade to begin with

[brushro]

Hello to all...I'm stuck on which component(s) to begin on an upgrade path.
Here's my current system: Mitsubishi 42" HDTV w/ component & DTV inputs.
Motorola DCT-6200 HD set top cable box (1 component & 1 DVI-D output).
*I'm now using the component output from the set top box to the DTV input on the TV.
Denon DVM-4800 5 disc changer (using component output to component input on TV)....Does have 5.1 outputs
Parasound AVC-1800 Pre-Pro; no HD or component inputs....Does have 5.1 inputs.
Parasound HCA-2300 3 channel amp.
Axiom Audio L/R channel speakers/Paradigm center channel speaker....No rear channels (yet)
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#1) OK...here's the deal...I've been shopping for a new TV...flat panel LCD or plasma...WAF is >100%..just need to narrow down the brand & model & whether it will be 1080i 0R a 1080p is still undecided (SEE #2)...most important factor is to get the display on the wall to help clear up floor space.
#2) Denon unit has over extended it's stay..it's clunky,slow & there has to be a better sounding unit out there...I'm leaning towards a Marantz thats on sale locally OR another Denon (single disc players only from now on for this guy)...either new machine is 1080i/p capable....price point is $750.00.
#3) Preamp/Processor:Only from a cost standpoint i'm considering the Outlaw 990 @ $1,000.00 (has 2 DVI-D inputs & 1 DVI-D output along w/ component ins & outs).
*are there other pre-pros out there w/ transferrable warranties that I could shop for used & would match/exceed the Outlaw unit?
4) I'm pretty much decided on getting the Axiom Audio rear channel QS-4's.
*Now it goes without saying i'm going to be needing a 5 channel amp & for that i'm shopping Audiogon...I wish the Bryston was more affordable but the Sherborne may be the ticket
So...where should/do I start?-One thought I had was a new DVD/CD player to help improve immediate 2 channel audio sound quality but from there....

 

[jcPanny]

Upgrades

Your parasound gear is pretty nice. You might consider adding another 2 channel amp for the fronts and keeping the other parasound gear. Your new HDTV will probably have 2 HDMI inputs and you can add a switch if you need more. The $200 Oppo Digital is a great upconversion DVD.

In a year or two, the HDMI and HD audio formats will be worked out and that would be a good time to upgrade to a new receiver or pre-pro.

Also consider a matching Axiom center channel for a better front sound stage and QS8's for the surrounds.

 

[icthys]

Get a new 2 channel like jcPanny mentioned. You mentioned your into 2 channel and a nice amp with lots of power could help out, look into Crown, Outlaw, or some other pro amp.

New DVD player sounds good, I'm in the same boat here.

What about some acoustic treatment?

 

[agarwalro]

Might as well get the part that wont need upgrade ever... Speakers.

Get the VP150 for the center and QS8 for the surruounds.

Also, I did not see a subwoofer listed... maybe something from SVS, Hsu, AV123, etc.

 

[Buckeye_Nut]

Of course, you'll want to get surround speakers. With that said, At this point in the game, the most significant improvement you can make is the "room upgrade". Treating the room acoustics will make a significant difference, but other upgrades will only make a marginal improvement at best.