Don't know a thing about your room, but how about the MK Movie 5.1 package? Lists at $1400. Add a second SB-8 sub for $880, and look at the Denon AVR-1913, list at $580. You can probably find the stuff less than list with a dealer in your area so you won't have to pay shipping. By the time you add tax, you'll be just under your budget.
As an alternative, the Pioneer VSX-1122 is about the same price as the Denon once you add the wifi adapter, and then you have AirPlay and net control without running a network line to the receiver.