For ~$1000, is there a better HTIB system than buying separate speakers? 5.1

Depends on your definition of Htib...to me, there are really three ways to get a system:
1. Htib, all in one, usually lack quality, but not always.
2. 5.1 speaker package plus reciever...some very good speaker manufacutures will bundle- EMPtek recently had a nive Impression series 5.1 for 800 dollars or so.
3. Buy each component on its own. Requires the most research and shipping can add up, but you can usually get the best system this way.

But to answer your question...you would likely have a better system with a budget reciever and Pioneer Andrew Jones, Polk Monitor or Infintiy Primus speakers plus a decent budget sub!

Close to 2, you can buy 5 matching speakers then get your sub and receiver separately. Based on your budget I recommend either the Polk psw505 or comparable bic sub from Amazon, which will set you back just shy of $200. Both are great values. I'd then recommend auditioning some speakers with msrp a tad above your budget, and scouring audiogon and craigslist where you can find excellent deals to get a little more for your money. Your budget is around mine, but I started at 2.1 with receiver for $600 and am slowly adding the rest with a center this year. Craigslist has been great for me along with the above mentioned sub. You may find a good deal on a receiver at Amazon or newegg too.

I just went through this myself, with a very similar budget. (Mine was 1,000 for speakers, and just as I started shopping my existing receiver died, so i had to scrounge an extra 500 for a total of 1500 for 5 speakers and receiver.)

After reading reviews, dozens of threads, and getting advice from the gurus here, I settled on the HTD Level 2 speakers and a refurb Marantz receiver. Set me back right under 1400.00. The importance of matching my L/R fronts and center was stressed, so I shopped with that in mind. (I initially looked at some compact satellite systems, but being the room is not small, and I like BIG sound, so towers made more sense for my fronts...)

Good luck in your quest! I'll have my theater completed in the next couple of weeks, and hopefully then I can post some pics and a review of the gear I decided on. Happy hunting!