Thanks for all the responses.
First, it is clear I'm not a huge audiophile.
Second, my speakers are on the discontinued list. Here's the link http://www.klipsch.com/products/discontinued/details/sf-1.aspx and I don't feel I need to keep them as part of the new system.
Third, most of the usage will be for Home Theater in a room that is about 15X15. My couch is up against the wall opposite the TV. It is an "L" shaped couch which does not make it easy to add surround speakers to the side. Smaller surrounds are more what I'm looking for.
Fourth, the receiver I currently have (Yahama) is not suitable for Video and will need to be upgraded. I'm looking at a RX-V663 but am not commited to it and it's not part of the overall budget.
Fifth, it seems like Reference is the way to go but since I don't/wouldn't crank the system up all the time would a system setup like the RF-62 be too much. I'm interested in a good HT experience but would it be overkill from a sound/price point?
How's this as a potential set up?
RF-52, RC-52, RW-10d, and RS10s. Too powerful for the room size? Also, any thoughts on the Yamaha running that setup?
Thanks again for all the input.