If you look around on the net you can get an atlantic technology system 170 for about $1050-1150, then add one of the new Kenwood receivers (vr410??) that received (no pun intended) rave reviews in stereophile guide to home theater, and for about your price range you have one VERY BUTTKICKING digital surround system.
P.S. I have the System 170 and it is incredible for the price, particularly the subwoofer.
It's great to have all this great gear. But I'd instead put all that money into software (Movies) I'd have SOMETHING TO WATCH ON ALL THIS GREAT GEAR. Doh!
It's hard to love Martin Logans and 2.35:1 CIH at the same time...