Speakers
You really need the speakers to tonally match, especially the mains and center channel. Consider using inwall, on-wall, or bookshelf speakers on brackets for all channels. One good option would be the new Axiom audio on-wall speakers: W22 mains, W100 center, and QS8 surrounds.
You should also consider spending a larger portion of the budget on speakers vs. receiver and DVD player. You could step down to a Yamaha RX-V1500 or 2500 receiver ($5-800) and an oppo digital DVD player ($200). This will also leave you enough money for a 10" sub from SVS or HSU. I have heard that the finish on the SVS is very durable (i.e. toddler proof).