Originally looked at Onkyo TX-SR505 and Q Acoustics 1010 but still sets me back £450.
I can't find any reviews for the Yamaha AV Receiver mentioned above. Is it that bad?
Look no further than my receiver at this price. It is brilliant and my only gripe is that it doesn't do what you are not bothered about it being able to do - HD audio, upconversion etc. So easy to use as well. You will be very happy. As for speakers. These Tannoys are decent. You obviously will only get so much from your budget but I've heard these speakers with a Denon 1508 (not as good as the Sony) and they sound very good. The Jamos are a bit dearer but I used to own them and can vouch for the sound you will get.
http://www.soundandvisiononline.com/moreinfo/index.asp?product_id=12172
http://www.richersounds.com/showproduct.php?cda=showproduct&pid=TANN-FX5.1-SIL
http://www.superfi.co.uk/index.cfm/page/moreinfo.cfm/Product_ID/2912
CA 840A; Sony BDP S550; CA DacMagic; MA RS6AV with Radius R90s; Sony KDL40W2000; Sony STR-DA3400ES; Sky HD; Linksys DMA 2100; Chord Chameleon Silver Plus RCA; Chord Chorus 2 XLR; Chord Odyssey 4 cable; QED SR hdmi and Clearer Audio Silver Line Coaxial.