The best thing about this hobby is the wide range of opinions out there, I tend to follow the "speakers are the most important component" doctrine, so it was interesting to see that both Nrchy and Warrenh believe the source is the most important component.
I currently have a speaker budget of around $1000 and I'm looking at B&W DM603 S3, and Paradigm Reference Studio 60; both of these are available at local dealers. Any other suggestions? I also have access to Tannoy, Audes, Spendor.
On a slightly different note, does anybody know anything about nOrh speakers?
Well there seems to be two die hard opinions here, and I think we are both right. If your source sucks your sound will suck. If your speakers suck, your sound will suck. In an ideal world we would all have enough money to go and buy it all at once and pick and choose for synergy and be able to demo everything we want. Since we can't, I'd personally start with good sounding speakers, and from there the sound will only improve as you improve everything else.
Start with the speakers. Don't know your price range, but as nice as the Titans are for surrounds, they do leave a lot to be desired as mains. Lots of options out there for speakers, so try as many as you can before you buy. Paradigm's Ref series is a nice speaker.