AVS Forum Special Member
Join Date: May 2011
Location: Ft. Collins, CO
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You really need at least $300 for the subwoofer alone. If it were me I would spend the $300 on the front L/R if possible.
Option 1 ($300 on just front L/R)
Ascend Acoustics CBM-170SE ($298 during sale)
Cambridge S30 ($219)
Option 2 (3.0, 3.1, or 2.1)
Front L/R: Pioneer BS22 ($89 on sale at Best Buy)
Center: Pioneer C22 ($99)
Subwoofer: BIC F12 (would put you over budget), Pioneer SW-MK2, or Martin Logan Dynamo 300 or skip completely and save for a better subwoofer from HSU Research, SVS, Outlaw or Rhythmik. The Pioneer and Martin Logan options are really stopgap. Neither extends very low but would do better than your bookshelf speakers for bass.
"Guns for show, knives for a pro..."
Living Room: B&W 804D, B&W CMC S2, B&W ASW610, Yamaha RX-A2030, Rotel RC-1570, Rotel RB-1582 mkii, Oppo BDP-93, ATV.
Office: KEF LS50s, B&W ASW608, Parasound P5, Parasound A23, Marantz CD5004, Rega RP1, Bluesound Node 2.