Originally Posted by ccotenj
no suggestions as far as speakers/electronics, however, use airplay instead of bluetooth...
Agreed on using airplay. Airplay will stream CD-quality audio, and since you have apple devices already, it's built in. If you have wireless internet already, the Yamaha V473 and Denon AVR-1613 have airplay built in for ~400. I'm partial to the Yamaha, but both are good. If you don't have wireless, I'd get an Airport Express ($100) which has airplay built in and direct audio out. This allows you to get a less expensive receiver since the Airport Express can output audio over optical and RCA. Either way, spend as much of your budget as you can on speakers.
This is all assuming you want a component-style system, of course. If you want a smaller footprint, there are a lot of airplay enabled all-in-one sound docks in the $400 range, but I don't know much about them. Even if you find a good one, it won't have any room for upgrades down the line - I'd avoid them unless space is at a huge premium.