Guys, at the outset, thanks for all the inputs and ideas. In the last few days I have visited enough shops around (and in Bangalore where I visited for business), I have come around the following decision:
AV Receiver:
Yamaha 863. I think I am getting a good deal at 57K.
>>>>>good choice
Speakers:
Seem to be tricky, as I see too many options in the market, but not too many dealers having demo kits available. And none of the demos is with the Yamaha AVR. So I have to depend more on reviews and advice on this forum.
I have short listed
Paradigm CT 110 5.1 (for about 45K)
or
Dali Motif 5.1 (for about 90K...it is definitely stretching my budget)
>>> As Venkat and Myself pointed out for your budget you can go for bookshelf setup rather than satellite/subwoofer combo.
>>>If you have shortlisted these two then audition and finalise by yourself.
Any alternatives, that are wall mountable and within 50K are still welcome, specially, if I can hear them before spending....
>>>> Acoustic energy classic 5.1 is good. try that/
DVD Player:
Sony PS3
>>>> good choice
Questions:
1. How do I know if the impedence rating of the Speakers and Amp will match. For example, I cannot find the impedence for CT110 in its literature on web.
>> I saw in the company web that it is rated at 8 ohms.
Paradigm ::: Models :::Cinema? 110 L/R
2. How critical is peak RMS for speakers? For example, Paradigm CT110 is rated at 100 Watts per channel and the Yamaha AVR 863 is rated at 105 per channel (total 735W). Will it be ok??
>>>> perfectly Ok.