New 5.1 setup recommendation

Go with the Custom Set-up as it will be better performing than that Klipsch HD 1000 in your large room. To save some money the Polk Monitor 30's would be plenty find for duty as surrounds.

BUT Do not go with the Polk sub. Get something like the HSU STF-2, or Bic H100 or Bic F12,

Polk subwoofers aren't the best

This will get the job done for $200 shipped http://www.vanns.com/shop/servlet/it..._c=site_search

In a 25' x 15' room?

Can I get some of what you are smoking please?

He is saying he doesnt think the Jamo system will be able to fill the space as good as the Polk system because of its lack of floorstanders as well as the sub. You have a large area of space to cover with sound so smaller speakers may require more power and not provide the response you are looking for.

IMO I would go with this setup:

Fronts: Monitor 70's
Center: CS2 (the bigger one I think)
Surrounds: Monitor 40's
Sub: SVS PB-10NSD or SVS PB-12NSD (but I am biased to SVS ). I have however heard lots of good things about the PSW505 to should that be top of your budget. Just keep in mind you do not have to use a sub from the same manufacture as the speakers so you have a lot more options. If you need help finding what your money can buy, check this thread out.

Absolutely go with the polks instead of the Kilpsch HD system.

Hey, at least there wasn't the usual "I don't like Polk 'cuz they're too bright" which what his normal response is to any mention of Polk speakers.