To dream the impossible dream...
While we're at it, do you know of a well built car that can cruise smoothly at at 90+ mph, sticks to the road like it's glued to it in the turns, seats at least five comfortably, gets over 34 mpg in the city, costs about $12,000 brand new and fuly loaded, and comes with a 10 year bumper-to-bumper warranty?
Well The MOST i really would pay for one is around $500.00... I don't really want to pay that much, but IF I have to in order to get a good system then I will...
with that budget, you might be able to pull off a workable but modest 5.1 system if you forgo on the subwoofer for now.
I want something that will have SURROUND sound that you can head out of every speaker and I'd like to have AT LEAST 7-8 speakers... I want something toward the "WOW" effect...
You can get HT in 5. 6 ot 7 channels (plus a sub) but you'll obviously need speakers for each of those channels and not every source uses all those channels all the time. With that budget, well, ...
You might want to rethink your budget, expectations, or preferably both, and try to come to a compromise that jives with reality.