I would start with the speakers, anything in the small to medium size floorstander would be more than enough for a room that size. Shop around, find something for about $1000/pair. Then find a good used home theater amp. I'm betting there are lots around from people upgrading to units that can do HDMI. A nice denon or yamaha. If you can find one, you could start with a good integrated amp, but they tend to cost a lot more than a used home theater receiver.
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