Surround sound.... Need help. Someone to keep it simple.

Is this budget for just speakers and sub, or for a receiver as well? Do you share adjoining walls with neighbors (beside, above, and below)?

How large is the room (dimensions)?

Well then, I would get the most bang for the buck receiver you can buy:
http://www.accessories4less.com/make-a-store/item/DENAVR1612/DENON-AVR-1612-5.1-Channel-A/V-Home-Theater-Receiver/1.html

This is an authorized reseller who sells refurbished with a full manufacturers warranty. This receiver gives you everything you should need including Audyssey MultiEQ (which is room EQ software built into the receiver and is worth every penny) along with Audyssey Dynamic EQ, which is great when you have neighbors or family members who don't like loud noises at night

This leaves you roughly $1K for speakers. I really like these:
http://www.svsound.com/systems/scs-02m-5#.UFECDlL12Ik
This one is $497 on a great sale and would leave you plenty of money for s subwoofer like this one:
http://www.hsuresearch.com/products/stf-2.html

Some other options would be these speakers:
Pair of these for left and right mains:
http://www.amazon.com/Infinity-Primus-Two-way-Bookshelf-Satellite/dp/B0045NCB32/ref=sr_1_2?ie=UTF8&qid=1347485781&sr=8-2&keywords=primus+speaker

This center:
http://www.amazon.com/Infinity-Primus-PC351-Three-way-Center-Channel/dp/B0044D1788/ref=sr_1_1?ie=UTF8&qid=1347485831&sr=8-1&keywords=primus+speaker

These surrounds:
http://www.amazon.com/Infinity-Primus-P143-Bookshelf-Satellite/dp/B0044D3R7M/ref=sr_1_3?ie=UTF8&qid=1347485852&sr=8-3&keywords=primus+speaker

And this subwoofer:
http://www.newegg.com/Product/Product.aspx?Item=N82E16882269026

The Primus speakers will play louder and cleaner for home theater, but I actually prefer the SVS for music and they should be more than fine for an apartment where you cannot exactly blast them too loud.

One more option, two sets of these:
http://www.newegg.com/Product/Product.aspx?Item=N82E16882325059

This center:
http://www.newegg.com/Product/Product.aspx?Item=N82E16882325046

And then the subwoofer referenced above from Newegg.

For me, the Deftech would give you the best balance between home theater and music and are on a great sale.

Fronts: Energy RC-10 (pair) - $218 @vanns

Center: Energy RL-LCR (one) - $199 @ meijer

Surrounds: Energy V mini (two) - 2X $119 @ Vanns

Sub: Energy S10.3 - (one) $199 @ Newegg

So the speakers will be $854 for a very good 5.1 system.

Leaves $ 346 for a good receiver.

Denon AVR 1612.1 AVR - $189 @ Accesories for less

Leaves you $157 for a bluray player,

I'd recommend a Sony S590 - $108 @ amazon

Puts you $49 under your limit, for cables and such - use Monoprice.

The Energy speakers are really cut down in price now, since they have been discontinued, but are MRP'ed much higher - I'd jump on the center at $199, since its normal price is $300 to $600. The sale price ends 9/14.

I own or have owned all of the speakers, they are very good for that kind of space, the receiver and bluray I've heard great things about.
Edited by hernanu - 9/12/12 at 3:50pm

Those are all great recommendations above. I own the Energy RC series, but I don't think you could go wrong with any of them

One thing about that Energy S10.3. It tends to fluctuate in price on Newegg between $200 and $230. Still a very good deal at the higher price, but I would encourage you to grab it while it's $200. You cannot do better for a sub at that price.