What do I need for a home audio system?

Paradigm is way better than Klipsch. Paradigm Mini Monitors ($450 a href="http://paradigm.com/en/paradigm/fronts-monitor-minimonitor-model-2-4-1-14.paradigm)" rel="nofollow"http://paradigm.com/en/paradigm/fronts-m…/a are awesome, and are small enough to fit in a bedroom. A pair of them are fine, unless you want Surround, in which case you need a center, and surrounds. Pioneer or Yamaha are ok receivers, but nothing outstanding. If you have the money, Parasound Z series amps & preamps are a great combo for about $600, and are outstanding. If that is a little to much, get a good receiver.