Hello Larrye,

I'm still quite a novice on the AV front, but here's my recommendations:

1). Receivers: I think both the Denon and Yamaha lower end AV receivers are a great value for the money (I have one of each)....particularly the Yamaha units which generally go on sale more often. Try and find a store where you can do comparison testing of both units on an identical setup (same CD, same speakers, etc..). Think of all the features you need (i.e. Component switching, 6.1, etc..) and factor that into your decision. Personally, I don't think you need to worry about the receivers being unable to adequately drive your eventual speakers unless you plan to purchase some high-end, very inefficient speakers. Most good speakers under $1000 should work fine with most decent receivers.

2). In terms of speakers, you certainly do not have to have 5.1 (or more) speakers with a HT receiver. However, you won't get true HT sound without all the speakers. Either way, I'd definitely recommend buying a matched center when purchasing your fronts. Speakers are discontinued all the time and it may be difficult to find a sonically similar center at a later date. With two fronts and a center, you could move your old speakers to the rear and have a full setup. A sub does make a big difference for HT (i.e. action movies), but you can buy one later. In regards to what speakers to purchase, bookshelves generally do lack some bass, but work well for HT when paired with a sub. If you plan to do a lot of stereo listening without a sub, towers are probably a better bet. As with the receiver shopping, do a lot of A/B testing (bring in your own CD disc) of the speakers AT THE SAME VOLUME LEVEL and choose the models that sound best to you. Also ask whether a home trial is possible. In regards to what speakers I like, I live in Canada and there are a lot of great Canadian brands that offer better value than the imports. These include Dahlquist, Energy and Axiom. The best time to purchase speakers is when the manufacturer is about to change models. 50%+ off the MSRP is not unusual during a good sale.

Hope this info helps and I'm sure you'll get a lot of enjoyment out of whatever you decide to purchase.
p.s. - a good learning remote may not be a bad idea either!