I agree with Mceljo, the receiver will always hold you back. IMO it is almost not worth upgrading speakers if you are just going to use a receiver. It is a fine way to get started but if you really want to upgrade your system move on. Buy new speakers first if you want but keep some money around for a new front-end too.
You should look into getting a good (but stay in budget) two channel preamp and amp. You can just bypass the receiver to the preamp for home theater (works very well for me). The preamp does not even need to have a bypass, you can use any analog input and just set the volume at 12:00 on the preamp etc.
For what it is worth I currently own a Marantz SR5005 that replace my broken Rotel 1056 about a month ago... They both sound terrible with music and are very similar in sound quality. I bypass them to my two channel equipment and only use them for home theater. The loss in detail and bass extension, is so great (compared to my two channel preamp) I am thinking about dumping the receiver all together and running a blu ray player straight to my amps.
I bought my first pair of decent speakers in college (B&W 703) and ran them of a $800 Onkyo receiver for a little while. When I moved onto a moderately price set of separates the 703s sounded like a different pair of speakers. Much more bass, detail and soundstage.
You should look into getting a good (but stay in budget) two channel preamp and amp. You can just bypass the receiver to the preamp for home theater (works very well for me). The preamp does not even need to have a bypass, you can use any analog input and just set the volume at 12:00 on the preamp etc.
For what it is worth I currently own a Marantz SR5005 that replace my broken Rotel 1056 about a month ago... They both sound terrible with music and are very similar in sound quality. I bypass them to my two channel equipment and only use them for home theater. The loss in detail and bass extension, is so great (compared to my two channel preamp) I am thinking about dumping the receiver all together and running a blu ray player straight to my amps.
I bought my first pair of decent speakers in college (B&W 703) and ran them of a $800 Onkyo receiver for a little while. When I moved onto a moderately price set of separates the 703s sounded like a different pair of speakers. Much more bass, detail and soundstage.