Well in any case you've convinced me to hunt for something to upgrade the lounge, seeing as you reckon you can get great sound for cheap. Here's what I've found so far:
Response range isn't great, but the mini hi-fi amp is worth ~$100 alone:
Celestion F10's (speakers) High Fidelity HiFi Sound SETUP
They look very tidy. Depends on what the reserve is. Needs power:
Wharfedale Diamond 220 Speakers
Then there are these:
Tower Floor Speakers - 2x 6.5 Inch - Pair
Great price, great performance. Looks like they're locally assembled. Worth a listen. Can't be worse than what I have right now, and a lot louder.
Lots of dusty old junk on TradeMe too.