Ok it depends on what you won't to get out of your system, and with a decent size living room, i feel you would have to up your budget slightly to fill that size room. Also depending on furniture and seating positions, and how loud you want your system to go. As for incorporating an av homecinema package for music, very few av amps can deliver satisfying results. Not knowing your layout of room, and considering using for both, then maybe worth looking at these still on offer at Richer Sounds. Start with the Tannoy F4 customs these floorstanding speakers will give a decent stereo for music and are excellent for movies at £150 oringinally £400 a real bargain.For rears F1 customs £79 and centre Fr custom £49. I would then look at the Denon 1909 on offer at £299 or Yamaha ax763, these being quite musical and would work well with the Tannoys. As for sub you may feel you don't need one straight away, so you could always add one when funds allow. For speaker cable Qed Xt for fronts and mirco for rears would be fine, this system would blow you away and i think after an audition you will be glad you spent the extra cash. Good luck