First-time buyer, confusion Help please!

Hi folks,

I am taking the plunge finally. I am a first-time buyer and trying to build up my first home theater system. It is for both music (50%) and movies (50%). I like them both.

So far my listening has been limited (please don't laugh) to Creative 5.1 speakers (5200) hooked to my Creative Live! sound card.

My initial budget is 40K and I would like to fit 2 bookshelves + A/V receiver + sub (will it fit in the budget).

I am planning to visit Kolkata soon to audition some of the products and see what I might like.

Sometimes I feel I should go for a stereo amp + 2 speakers + ? sub , then sometimes I feel I should go for a 5.1 and above AV receiver.

For the speakers Warfdales 9.1 looks good.

What about the receivers? How is Denon 1507?

Or a good stereo amp perhaps? But which one? I think I can get Cambridge Audio in Kolkata and Marantz - but they are mighty expensive.