I recently bought a home audio system of my own. I ended up with a Sony DE845 (their mid-range) receiver, Klipsch speakers, and a fairly low-end Boston subwoofer (I refuse to spend a lot of money on something that only rumbles).

I haven't had any trouble with the receiver, except that it's almost too large to fit on the shelf in my entertainment center. The speakers also sound fine, to me.

I would really take recommendations on speakers with a grain of salt, though. Go to a place like HiFi Buys that has several speakers already set up and you can change between them, and give the ones within your budget range a listen. I did this, and was surprised at how different various speakers can sound from one another, without it being immediately obvious which one was better. I ended up choosing Klipsch's second kind of floor speakers for my front mains because I liked the warm sound it made, but still seemed really good at handling treble.

Speaking of HiFi Buys, they also have a good coverage plan on their receievers, something like $50 for 5 years of not only fixing it if it breaks but also fine-tuning it to make sure it's up to the manufacturer's standards.

I'd also take wattage ratings with a grain of salt. Most decent receievers that claim to do 70 or more watts will fill the average living room perfectly. I can't turn the volume dial over 2 with mine without it being too loud, and it's 100 watts, which seems to be the average. Really high wattage ratings are for really big rooms or PA systems, and most people won't have either.

Just my two cents =)