Thanks for the replies. Right now I'm thinking about the Onkyo TX-SR603 (My friend wontbe using headphones) and I've found http://www.amazon.com/Infinity-Primus-10-Inch-300-Watt-Subwoofer/dp/B0044D3R6I/ref=pd_sxp_f_pt This subwoofer in budget. Is it any good? There's then about 100-150 left for the bookshelves. Is this a good idea or too much money spent on the woofer and not enough on the bookshelves. I can get the woofer for $250 new and the receiver for $110 used.
I'm thinking the Primus is overkill.....but if the price is right.
Your looking at at least $175 (or more) to mail order any other sub-woofer, so the Primus is a great value.
Sometimes on eBay they sell used Infinity Beta 10s & 20s bookshelf speakers, the better forefathers of the Primus line.
For a decent sound card, Asus Xonar DG $30 (PCI) and some places have a $10 mail in rebate for the DG this month.