I am deciding on a home theater unit. 100%HT and no music since that side is already covered. I was thinking on going with Onkyo TX-702 receiver, but I am open for other suggestions in the $500-$600 price range. I really need help on choosing the right speaker set up though. I live in a New York city apt. The space is 14x10, with 9 foot ceilings. I have a sharp aquos 32" LCD. My delima is speaker, and sub choice. I have heard decent things about aperion, being that they are a small company with good speakers for the price. The thing is there are too many subs and I know I dont need a huge one, just one for Home Theater use only. If anyone can help, please do. My speaker budget is $1100 for all including center, I would love to pay less but will have to see. I also would prefer using small companys that put more emphesis on quality.
I like the Onkyo 702 very much. Other receivers in that price range for you to go an listen to are: Harmon-Kardon (the AVR 335 or 435), Marantz (SR-5200 or 5400), Denon (1805 or 2105). These can be had for under 600 (more or less).
For 100% Home theatre I would have to suggest yamaha. I have heard onkyo many times and it just doesn't do the job for me for movies. In my opinion the yamaha does the best job at bringing you into the movie. In your price range I would look at the Yamaha rxv650/750/1500. I would suggest matching paradigm with the yamaha. Try the paradigm titans as fronts, cc170 for center and adp170 for surrounds or atoms for surrounds with a pdr10 sub. These are great little speakers and would sound great in your small room. Have a listen and see what you think. If you can find the money to step up to the mini-monitors then that would make it even better.
For 100% HT and best bang for the buck I'd suggest the Onkyo 602/601 for $250-350 (the low number is for refurb at ecost.com and the higher number is online at jr.com) or for a tiny bit more the Pioneer 1014 at around $400 which will have more features and warmer sound.
For speakers I'd look at ascendacoustics.com they're just what you described: small and quality-intensive. They also have a great System Advisor page (under the Purchase menu) which gives you nice discounts for a package deal, you also have the option of getting those package discounts but buying only part of the system at a time (System Extender). Very nice company to work with, excellent customer relations. They carry Hsu subs and HK receivers too.