For $200 your best bet to get something haflway decent is to go with used gear. Craigslist ususally has some decent stuff if your willing to looks. As for the silver bullet of whats the best setup for $200 thats not something that can really be answered. If it was me I would look for a older receiver that cost someone $500 new that they want to sell cheap and the same with a set of speakers. They dont have to be new to sound good especially if your looking for a stereo setup. Getting into HT surround sound AV is a different story.
The Infinity P363 towers are $117 each! Don't see how you can get two towers and the Pyle amp for under $200.
Doh! That's what I get for trying to rush answers while working. Thanks for catching that.
Fry's did run a special on the second generation Andrew Jones Pioneer towers just this last week for ~$150 a pair. That would have been a decent setup as well. I agree with lemonslush who recommended going used, but that will require you do a lot of homework and knowing what you will be getting as there will not be a return policy. You'll get more for your money, but the potential for getting burned with no recourse will be higher.