Putting Together a New System Suggestions

[gixxerk3]

Hello all. I have my PS3 and 42" 1080P LCD that are both only a couple months old, so I am all set in the picture department. Now it is time to work on the sound end of things.

I currently have a Yamaha R-V1105, connected via optical, which is about 8 years old I believe. Only 85 watts per channel, 5.1, etc, etc. Sounds decent, but I would like to upgrade at some point. My current speaker setup is sub par at best, but currently getting me by.

My question is should I get a new receiver first and then piece together new speakers, or should I get the speakers first? Any suggestions on componenets would be awesome too.

I have been considering the 605 even though it doesnt put out much more power then my current receiver, but then again I cant even decode HD MA with the PS3 and I also only have room for 5.1 currently. I dont need the extra power because my home thater room isnt real huge.

I guess the real question is, how do you guys feel about the current, older technology, receiver paired with new and nicer speakers? ANd is truley worth the receiver upgrade.