sweet
Next question:
Is HDMI1.4 and 3D important, or is HDMI 1.3 enough?
For 1200 I would recommend
Receivers:
For speakers I recommend looking into the lower end offerings by the following brands:
Behringer TRUTH
Ascend Acoustics
EMP Tek / RBH
PSB
Revel Concerta
Infinity Primus
Boston Acoustics
Usher Audio
Mackie Studio Monitors
Most of these websites will have a dealer locator for you or are available online.
Go audition the speakers which are available for audition. Preferably audition at varying volumes - never let the dealer control the volume knob because they may go for the loudest possible volume before strain. You want to hear how loud they'll go before strain and also hear them at a comfortable listening volume. You want to listen for naturalness, for instrument separation, for directional cues, while also keeping in mind the nature of the room you are in will have a reasonable effect on what you're hearing. You may want to ask the dealer to allow you to bring the speakers into your home for this very reason. A good dealer will acquiesce. A bad one isn't worth your time anyways.
Also look into not only speakers from, but also subwoofers from:
My major recommendation is before going for a full-on 5.1 try out a quality 2.1 or 3.1 first. by spending more on mains you may really get a nice experience. Then you can also get surrounds later as the receiver is 7.1 or 7.2