The first and most important piece is finding the speakers you like. Once you find them you can decide if you want to slowly build an awesome system by getting some great mains and a good AVR and adding the sub, center and surrounds as more money becomes available or go ahead and by a decent system all at once.
You have a decent size room so you can not skimp on the sub. SVS has their +2 subs for a great price right now and I would jump on that deal.
So if it were me; I would get the SVS sub, find the mains I like for 1K and get a 400 buck AVR. This will take you over budget by 500 bucks but would be worth it in the end. You can add the other pieces down the road. For mains I would look at:
B&W
Paradigm
Monitor Audio
Swan
AV123
PSB
Axiom
If you want to get it all at once for your budget; I would look at the complete systems from AV123, SVS, Axiom and Aperion.