Need inexpensive front speakers and sub for midsize room

We moved into a condo last year and I figure now is a good time to look at home theater options. I have had my eye on the ~$400 Denon receiver, which seems to be a decent inexpensive choice. The previous owners had installed some rear speakers in the ceiling and I have no idea what brand they are or how they are oriented. I figured I would get the receiver, check out how they sound, and replace them if necessary.

This leaves me trying to figure out what to do about 2 front speakers, a center, and a subwoofer. My room is maybe 18x18 and we sit right in the middle. Because this is a condo, I don't think we need the sound to be booming, but I want to make sure the speakers are good enough to fill the room. I think what I am looking for is a decent set of bookshelf speakers for the fronts.

I was looking to spend no more than 1000 for the 4 pieces, but I have zero knowledge of good brands. I think when I looked 10 years ago everyone was talking about how Energy made a great bookshelf system for not a lot. I appreciate your help!

Edit: I forgot to mention that the room has a hardwood floor with a large rug in the middle. The sub would be on the floor, and the speakers would probably be on the tv stand flanking the 52" tv.

Thanks for the recommendation. It looks like the 162s do get pretty good reviews. Now, if only there was a place I could listen to them in Chicago. One of the reviews for the C350 center mentioned something about how it is somehow more powerful than the bookshelf speakers. Is the C350 as good a match for the P162s as the C250? What is the difference between the two models? You make it sound like the $50 upgrade is worth it.

Just yesterday we got the receiver. I hooked it up to test out the preinstalled ceiling rear speakers and they actually sound pretty good, aside from them firing downward.

We took a look at our situation with our furniture and I think now that the front speakers are going to have to go on the stand next to the tv, which means I am now looking for good satellite, center, and sub recommendations for the same price point. Everyone I know is ordering that B-something 12 subwoofer, which I assume still fits this situation.

A quick glance through some threads here has people recommending energy and orb front and centers, and, my coworker just bought the new polk satellite line. Anything else I should consider for less than $800 (I think that sub is around $200) for the two front and the center?

Thanks again.