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Speaking of British speakers, check out Flat Earth Audio's sale of ATC Entry line. The SCM-11, which is an excellent bookshelf speaker, is 40% off while stock lasts.
Have you considered powered/active speakers? With internet connection/control you'd have internet 'radio' and everything on your hard drive available in a simple/small form factor. Powered speakers have a 2 channel amp (matched to the drivers/crossover) inside one cabinet to serve both speakers. Active speakers have one channel of amplification per driver for better matching/control and allowing for a more sophisticated/energy efficient crossover resulting in more dynamics, flatter frequency response, and more/deeper bass output. Note that most active monitors are for studio use and are dry sounding, designed to reveal the warts versus to provide enjoyment.If you own an iDevice for control you're 1/3rd of the way home. Add Airport Express for $100 (you have a computer available, right?) and one of the following (all meant for home use):For low volume/casual listening (all small and powered): Audioengine A2 ($200 - easy/laid back sound, mid/bass hump); Audyssey Media ($210 - dynamic, good mid/bass punch, mids recessed, highs can be rough, good imaging, includes DAC); NuForce S3-BT ($300 - smooth warmth, pristine treble); PSB Alpha PS1 ($300 - wide sweet spot, clean, clear, delicate)For more serious use (all active designs unless noted): Adam F5 ($500 - highly resolving, full bass, open/forward/up-tilted sound, refined/non-fatiguing); Emotiva 4 ($350 - good value, detailed sound, big soundstage); Paradigm A2 ($600 - DSP extends bass at lower spls, multiple connection options, lacks warmth for acoustic instruments); Vanatoo Transparent One ($550 - cherry finish, DAC, multiple input options, serious bass, honest use of DSP, powered - not active)
My suggestion, get a new amp and fire up the primary speakers. Music is an incredible and important development tool for kids. From 6 months old, my son has completely enjoyed all the music in the house. Now at 2 years two months, sits and plays, listening and occasionally getting into it. I can remember when I was very young, listening to the orchestral Peter and the Wolf, a memory that has stuck with me. Just my $0.02
You might consider a NHT SuperZero system. I know that Dennis M. recommends them for surrounds on the cheap. I am using them for surrounds and they seem to do well. I have a friend who just built a 7.1 theater system with 7 of these and a Rythmik sub. He loves it. I haven't had a chance to listen to it yet. They don't play much below 100Hz, so you might want to put an inexpensive sub with them. NHT pushes the Super8 sub which gets you into the upper 30Hz Range (37Hz -3db). But, that is about $550 with 2 speakers and a sub. Maybe there are better bargains on a small sub to hit $400 price target.
Buying a new amp would be very expensive. We just got our Quicksilver mono blocks a few years go. And I tend to keep gear for quite some time before upgrading. Last speakers lasted me 12 years before I go the Salks; last amp over 8 years. I usually don't suffer from upgradeitis.
Actually, I did. Being a Linux geek, I envisioned a a smaller version of my Alix/MPD server attached to powered speakers via one of those USB DACs on a cable. But my better half would appreciate something where she could hit the power button and tune the dial to 105.9Mhz WQXR. And the idea of a vintage receiver with a classy lit dial appeals to both of us. We could always attach and iPod to the Aux input if we wanted to.
Thanks, I'll look into them. I also read about the Music Hall Marimba(sp?) which has some really good reviews. About $299.