I used to use a Onkyo HT-S780B HTIB system before recently upgrading. I had no quality issues with the system not functioning properly and the features at the time were very competitive for a great price. I still use the sub but that was really the only speaker out of the group that I would say is even close to decent quality of sound compared to other HTIB systems made by companies that make speakers.
My advice would be to echo what others often say when discussing HTIB systems - get a system made by a company that makes speakers normally. Onkyo does not and the contract out that part of the job (last I heard) but their receivers are still decent so if it's the specs you're looking for and the sound isn't crucial to you compared to better sounding speakers, go for it. Just know that for a little work and hunting around you could probably find a 5.1 speaker only set and buy a great amp on clearance or even open box special (like I did) and get better specs AND sound all around.
Just for comparison purposes, here is the old system I had: http://www.vanns.com/shop/servlet/item/features/502511528?v_c=StockNotify
If you compare that to the system you're looking at, it's fairly close speaker wise - the sub and mains are passable but the center was muddy and the surrounds were just "there" enough to produce sound. They sounded like $5 radio shack alarm clock speakers honestly. They were ok for surround movies to place the sound, but music was horrible.
My suggestion to get a decent sounding system on a minimal budget,
Speakers: Polk Audio system for $216 http://www.amazon.com/Polk-Audio-Channel-Theater-Speaker/dp/B0002WTK4S/ref=sr_1_60?s=aht&ie=UTF8&qid=1353505973&sr=1-60
Receiver: Yamaha 5.1 AVR w 4 HDMI for $199 (sounds like you have a lot of input need) http://www.amazon.com/Yamaha-RX-V371BL-5-1-Channel-V-Receiver/dp/B004QQXDVC/ref=sr_1_1?s=aht&ie=UTF8&qid=1353506198&sr=1-1&keywords=5.1-Channel
Blu Ray player: Samsung currently seems the best budget player with Sony right behind them. $75-$109 depending on model. You can search the blu ray player forum for advice there but I like the model I got in my sig just fine for $109 and it is networked to stream from Netflix, Amazon Prime, Pandora, etc.
Good luck either way you go - the appeal of a starter HTIB got me out of the gate on my first system, and it taught me a lot about what I would want down the road on my next setup. For a budget price like that and with no current system to set and expecation, it will be GREAT compared to TV speakers so just do what feels right to you.