What would you upgrade in my position?

Hi,

I have £500 to spend and currently have a Sony Bravia 40V4000 Full HD TV, Panasonic DMP-BDT320 Blu ray player, an old Atomic A10 sub and 7xCreative surround speakers from a Creative Gigaworks S750 7.1 surround speaker set.

I want to use my home cinema to play Blu rays, watch Sky HD and play FLAC music files (dance, trance, pop). My priority is getting good quality sound and video rather than having loads of other features. However, I would like to have either the blu ray player or AV receiver to be capable of playing FLAC music files preferably via DLNA.

I'm thinking that I'm probably best spending the money on a good AV receiver and getting some decent front surround speakers which can double as stereo speakers for music listening? I guess the creative surround speakers will suffice for the other surround channels for now unless you think this is a mistake?

I had hoped to use the Panasonic Blu Ray player to play my FLAC files via DLNA but if I try to play the files to the Blu Ray player from my android phone or PC it refuses to play them (says it doesn't support the format oddly I can access the PC/android FLAC files over DLNA through the Blu Ray player on screen display though but there is no random play option) If anyone has a solution I'd be grateful to hear it! Failing that, I would consider swapping my Blu Ray player (If you feel that is really worth doing you can add £130 to my system budget).

Thanks for any help you can give me,

Rob.