I suggest craigslist
KEF satellite speakers/Yamaha Receiver & Bello Tv stand.
is an example of a fantastic starter set for your home theater. 400 is not a bad deal for the KEF 2005 set a KEF sub and receiver. Those speakers are fantastic and if you need small speakers you'll be hard pressed to do better.
KEF Coda 9.2 Speakers .MINT!!!!
is another option worth looking at. You could combine these as fronts and use 4 of the KEF eggs as surrounds.
surround sound speakers - Infinity
Beta 40 towers are equal to the bottom Revel stuff(high end line)
I'm not sure I'd want to pay 500 for the set though.
NHT Speakers ...EXELLENT!!!
Another solid option
If you want new you are probably not going to do as well as the used market in your budget range(Speakers if well cared for can last a long time). That said Infinity Primus bookshelves or towers are good speakers and Energy CF30s are good speakers.
Accessories4less: High End Audio at Low End Prices! is the cheapest place with the best customer service for receivers.
Fronts:Madisound RB Kits Rears and Sides: Kef 2001.2, Subwoofer: TC Tiger-1000
Receiver:Onkyo NR-708 Amp: Behringer EP4000 Players: Panasonic BDP-60, Onkyo DX-C390 Projector: Epson 8350 Screen: FAVI PD-HD-92
That's like trying to get decent sound in a public lavatory.-TLS Guy
Heck, if you've got the cash, go the NSA supercomputer route and use Fluorinert- Adam
A shovel of dirt can stop a flood. -Westom