New house: recommendations for home theater

[wteening]

Hi all,

This is my virgin post, so bear with me and my lack of knowledge.
I've recently bought a house with my girlfriend, and we'll be moving in in the first two weeks of september. I've been able to convince here we need a large TFT screen, but its size depends on the cupboard it will be put in. But I'm actually inquiring about the audio side of things, I'll try to break it down in parts:

- Equipment
- Floor
- Placement

Equipment:
I have about 1500 euros to spend, I could go a TAD higher, but preferably not near 2000 euros. Keep in mind that I probably have to buy in either the Netherlands (my home country), or Germany, so the prices will be a bit inflated compared to US or UK.
I've fallen in love with this Onkyo TX-SR875 receiver which I can get for 800 euros, but it could be way over budget if I also have to buy the speakers. I've convinced myself I need it for the 1080p upscaling (for the big ass TFT that's planned) but I'm open to suggestions.
I've got neighbours now, so quality is much more important than the amount decibels.

Summary: I need to buy a theater system (with 1080p upscaling) for about 1500-1800 euros

Floor:
I can decide how much sound buffering I want underneath the floor, is it a matter of more is better? I can choose between 10 or 23db...

Placement:
(see attachment) The couch will be in the small part of the living room (at the top of the picture), so the television will be on the opposite side. I think the room is too small for 7.1 (not sure if my girlfriend will appreciate that), so where would I put the two front speakers, two satellites and the sub to make the best use of this room?

Please forgive me if I've made any typos, I'm a bit drowsy from the painkillers for my back ache.