Recommend on speakers or should I go HTiB

[igotcabada]

The receiver that comes with that HTiB can be purchased at Accessories4Less for $270. To me the question for you is whether or not you can get better speakers than the Onkyos for the remaining $500 and I think you can.

You might want to also consider just doing 5.1. I'm not sure exactly how your room is set up, but its usually very difficult to properly set up 7.1.