Speaker/Receiver Wattage Question

[azereus]

Hi all,

I'm still on my quest of setting up a decent (yet affordable) surround package for use with my PS3.

I've settled on the Sony STRDG720 for the receiver. I know it's not the best, but the price is right and it looks like it will do everything i need.

Now on to speakers......sigh.

I'm very confused about the wattage rating of the receiver and what that means regarding what kind of speakers i need.

The receiver lists the following specs:

7.1 Channel 735 Watt amplifier (105W / channel)

So does that mean the speakers need to be able to handle at least this wattage? If they're rated lower, is it likely that i'll blow the speakers?

As an example, one of the options i was looking into was the Qunitet III. The specs for those speakers list the following:

Satellite: 50 watts (200 watts peak)
Center: 75 watts (300 watts peak)

That's where I really got lost. Why do they list 50W but then 200W peak? What does that mean?

In my little example, are these 2 pieces even compatible?

Thanks for any and all help.....this noob appreciates it!