What's more important speakers or amplification?


What would be a better alternative for $3200:

1. Use existing Sony STR-DA777 ES amp (5 x 120 watts)and invest $3200 in new speakers (Fronts, Center, rears, and Sub)

2. Spend $1600 for 5 channel amp and use Sony as Pre and the remaining $1600 on speakers (Fronts, Center, rears, and Sub)


What brands should be considered?
mules
i used to agree with those who are saying speakers until i heard the tiny rega alya speakers. i first heard them with all rega electronics, and they sounded pretty good. then, i heard them with an all-NAIM setup, a cd5, pre, and amp. they were different speakers. i couldn't believe how much they began to sing with the better source.

when natalie says that a good source will make an average speaker good, she's absolutely right. and if some of us really can't tell the differences between amplifiers, why are we in this hobby? seems like the money would be better spent on a nice crack habit.
Generally I agree with Sean. Speakers and Amp should be bought as matched combination. That is especially true for 2-ch audio. In that case, however, we are talking about 5.1 HT system for $3,200, which means building decent entry level hi-fi HT setup. In such setup Sony ES will do adequate job and later could be upgraded. I would allocate some part of your budget(like $500) on decent cabling and spend the rest on speakers.
Here's what I have currently:

Small Home Theater: Sony STR-DA 777ES amp, Pioneer DV-37 Prog Scan DVD player, Triangle Titus Fronts, Triangle Centrale Center, Mirage FrxS8 sub, Paradigm ADP-150 dipole rears (Kimber 4TC cabling), Panasonic 32HX40 32" direct view HDTV.

Listening Room: Jolida 502B integrated amp, Totem Sttaf speakers, Sony 333ES CD player (Goertz MI2 cabling). Echo Busters Corner traps and regular echobusters room treatments.

I completed the basement and plan on buying a 65" Mitsubishi for around $3400 for a 13' wide x 20' long room with 8' ceilings. I already have $1600 for audio. What's the best option:

1. Sell the Totem and Jolida- Should get $1600 for both (alas the $3200 figure). That would wipe out the small listening room. I would then need the basement system to double as Home Theater and Listening Room.

2. Keep the listening room and use the $1600 and equipment I already have (i.e. integrate Totems or Triangles somehow). I though about getting another pair of Titus ($500), a HSU sub ($500), and a $500 mulitchannel amp (used). Use the Sony as a pre.

3. Or I could sell the whole lot and start over.... my priority is 60%-40% home theater. If I could have one good system that does both. The basement room is a huge improvement over the small home theater and "listening room" (a 10'x12' bedroom). Thanks for yur help and suggestions!
Here is my experience. I started rebuild my system last year. Replaced KEF reference One with B&W 801 new music flow out old CD's. 95' Carver receiver was doing a decent job to drive B&W. Just replaced Carver with an Aragon amp, I do detect some differences but not dramatic changes like replacing speakers. Hope this help.
My opinion would be to work on making the front 2 channels the best possible and keep the Sony receiver on board for amplifying the center and rear speakers and processing duties. Use the pre-out on your receiver to connect the front two channels to another pre and amp or integrated. This could be satisfied by your Jolida if you like that or surf around for someother good integrated amp preferably with a HT passthrough. The Rogue Tempest, Plinius 8150, Manley Stingray, Pathos Classic One, these can all be had for under $1600 used here on Audiogon among others.
Your speakers seem pretty good, although for HT duties I would probably lean towards the Sttaf over the Triangle Titus. But it depends on what you like better. Let me throw out some options depending on what brand you like best. If it is Totem. Sell off all the Traingles and Paradigm's and hopefully this will allow enough fund to invest in a Totem center and surrounds, say the Dreamcatcher series. If you like the Triangle sound better, move the Titus to rear duties (or could sell Titus and keep Pardigms for rears,)sell the Paradigms and the Totems, and with whatever money that leaves you purchase your favorite pair of Triangle speakers within your budget.