A cheap, but pretty decent setup that served me well up until very recently, when I caught the upgrade bug:
Polk M20 fronts -- 100-150 bucks for a pair
Polk PSW10 -- around 100-130 on ebay
Polk R15 -- Harder to find now. I got my pair for 35 on ebay back a few years ago, but whatever the equivalent is now, should be around 80 bucks for a pair, max.
Polk CSM/CSR -- this is a center channel which should run you about 100.
You should be able to get all of this and still have enough money under your budget left to buy a few cables and speaker wire. The subwoofer is not a home theater monster but is very solid for music.