I'd certainly give the nod to the $999 SVSound SBS-01 speaker package that includes 4 SBS-01 bookshelf speakers for fronts and surrounds, 1 SCS-01 center and a PB10-NSD subwoofer. You really cannot beat the performance and value all around in that package!
For the receiver, I was a huge HUGE fan of Onkyo's lineup last year (the 05 models), but this year, I'd have to give a slight nod towards Denon. Onkyo would still be a great choice, but I'm loving the new Audyssey technologies that Denon is including in their 09 models and it's Denon, so I'm sure you'd have no complaints about their amp section or reliability. The AVR-1909 would probably make the most sense for this budget.
Cables for sure come from monoprice.com, bluejeanscable.com or tartancable.com. Just check all three to get the lowest price possible on exactly what you need. monoprice.com has some great banana plugs for the speaker wire connection to the receiver as well for extremely low prices, so grab 5 pairs of those. I definitely find it easiest to use banana plugs to connect the speaker wire to the receiver, but I stick with a bare wire connection to the speakers themselves.
For power protection, definitely go with APC. I'm a big time believer in having some battery backup/UPS (Uniterruptible Power Supply) in the chain. Not sure if you have a DVR/Tivo in this setup, but if so, a battery backup can be a life saver! Keeps power flowing for a while at least during a black out and that can save your recordings and keeps your hard drive safe.
APC has some great, not too expensive
battery backup/UPS units.
The
Back-UPS ES units in particular are affordable, look nice and really get the job done.
Best of luck!