Please Help Me Upgrade My Audio

[Steve46]

Hey all,

About five weeks ago I entered the world of blu-ray, and upgraded my old CRT HDTV at the same time.

I'm now using the Samsung PN50A650 and the Panasonic DMP BD35.

So as you can see, I typically seek value for money rather than buying the absolute best equipment. I love the picture quality on the 21 blu's I have picked up so far, but using the TV speakers is killing the sound. I would like to experience my BDs with a good audio system.

My budget is flexible. I am really looking for two types of advice:

1) Should I go the HTIB route as my apartment is small and the TV is in a 15 x 12 room? Or should I look for a quality receiver and speakers?

2) What would you suggest based on your answer to Q1?

I realize that you get what you pay for to some extent, so I won't go for a budget system if it is a waste of money. I don't want to end up spending a fortune either. So considering the size of my room, what would be best? I have a huge CD collection too, so the ability to experience good music reproduction would be a plus.

Based on your answers I will research the options and spend anywhere from $500 to $1500 (if you convince me it's worth the money).

I really have no clue on what to buy. I don't even know whether I need an amp, or whether it is integrated with the receiver. What cables would I need (currently have two HDMI cables connecting the cable box and BD player to the TV).

Sorry for the dumb questions, but I figure a lot of you will have been in this position before.

Any advice or suggestions are welcome.

Thanks.

Steve