Renovating Stereo in February: Where to shop

[Musashi]

I contemplated this last year but decided to delay it since HDMI 1.3 had yet to be seen on receivers.

I'm expecting to get the funds after the new year, combining a tax refund, an increased salary if I pass exam, and just maybe, a bonus. With them, I will set up a sound system that can produce lossless 7.1 sound, found on most of my Blu-rays. I have 2 speakers already; My plan is to get fronts, rears, a center, a new receiver. I'm estimating a budget around $3,500.

Question here is where I should go and buy from. Online or B&M; either is fine, but who's got good deals?