£800 to spend on AV unit and speakers....help please.

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Currently I have a PS3 and a Sky HD box connected to a Full HD Samsung LCD TV and a useless Sony DAV800 home cinema system. I am looking to replace the cinema system and not sure what is best to buy for around £800.

The Sony was ok in it's day, but the output to the front RH speaker has given up the ghost and it has already been repaired once with a stuck CD drawer (both common faults). The speakers are ok, but only 50w per channel and the sub is passive. Would consider reusing if anyone thinks it is worth it, although I think an active sub would be much better.

I think it is time to buy separate AV unit and speakers. Both the PS3 and Sky HD box have HDMI outputs which I presume are best connected straight to the TV rather than to an AV and take the fibre optic connection from both to the AV, but I suppose this depends on the recommendation. I also have a Panasonic DVD recorder which I should connect (by scart to the TV and audioleads to the AV ?), but I haven't used it for months since having the Sky+.

My living room is about 15 foot square, but the TV is in the corner (no other config possible with current furniture).

Additionally, I like the sound of wireless rear speakers, although I assume they must have a power source ?

The other consideration is that I want something that sounds good playing music as the missus doesn't like having the current 10 speakers ! Assume that I can play CD's through the PS3 and won't need an AV with an integrated DVD, although I'll suppose lose the equaliser facility.

I'd be grateful for any recommendations please (including necessary leads). Thanks Melvyn.
 

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