Speaker Options
There are plenty of good speaker options in your budget for a quality 2.0 or 2.1 system for music playback. Check out some local dealers and audition Paradigm, Klipsch reference, PSB, Energy, etc in addition to Def Tech.
If you want a complete 5.1 speaker system + receiver for $1k then internet direct is a good option. AV123 is a good option and SVS has a 5.1 system with a good 10" sub for $800.