Here are some options I posted in a couple of other threads. You should be able to adjust the choices slightly to get close to your price range:
How about 4 A3-5tc and matching A6-5t5 along with the A2-250 sub for $629 shipped. http://www.edesignaudio.com/htpackage.php
Or two pairs of the Athena LS series bookshelves and the matching center for $300 from audioadvisor.com and get your choice of $300 subwoofer. (Like the ed A2-300 for $315.)
Or the HSU Performance 1 package http://www.hsuresearch.com/products/performance1.html
Or how about 4 Polk R50 towers http://shop2.frys.com/product/4005092
, plus the CS1 center http://www.amazon.com/Polk-Audio-Mon...3728422&sr=1-1
or buy a 5th R50 if you can find the space for it. Then add a BIC H-100, x-sub, or Outlaw LFM-2 subwoofer. If you need to go cheaper, try the Athena AS-P4100 or Velodyne VX-10, but you are giving up some performance by doing so.
By the way on the Polk's from Fry's, people sometimes find that it is cheaper on shipping to have a separate order for each individual speaker rather than buying them all on one order.
Also, you can try speakers from here. They may be low-end, but with a completely risk free trial, it won't hurt to give them a listen.http://www.thespeakercompany.com/sto...isplayHomePage
The JBL Venue series is being discontinued, shop around for those and you may get some good deals in your price range.
This should be enough choices to create a listening list to try out.