Congrats on your new home purchase.
Now for the bad news...I don't think you're going to get much more than a HTIB set for that budget, and it'll be fairly unremarkable in that size room.
I would get to know SlickDeals (with a net) and FatWallet (with a com).
Why the 2112? Networking? can be done cheaper with a refurb Blu-ray player.
The 1712 offers Multi-Eq level of Audyssey, which would be more attractive to me for 'decent sound', and would open up more of your budget to speakers.
Really, 5-600 is what you'd be looking at for one decent 'real' subwoofer, for the space you're trying to fill. I suspect that's why you havn't gotten any responses. But it's true. Unpleasant to hear? Maybe, but the money you'd end up wasting through incremental 'upgrades' would be more unpleasant that saving for a better initial set-up.
For a 1100 budget... 300 for a receiver, 500 for a sub, and 300 for a decent pair of speakers for your front L and R, and then add the center and surrounds later as your budget allows. This will allow you to get some quality pieces that you'll enjoy now, and wont feel the need to upgrade for some time.
Look at it as a % of the cost of that nice, new house? You won't live there forever, but good, quality speakers could easily go with you to the next house. I spent / wasted more $ upgrading speakers than it would've cost to buy the right tool the first time. For 600 for five speakers AND a sub ? MAYBE if you found one heckuva deal on used equipment through Craigslist or similar outlets... but ... you'd better be able to recognize that deal the second it pops up, and have the chutzpah to pull the trigger. So not very likely.
Not trying to rain on your parade. Truly I'm not, but I don't want to see you spend what you have now on something you won't be happy with. Piece it together slowly, be patient, look for deals, and do more research so you'll recognize the deal when it does pop up.
mods, can we have a 'dislike' button ?