First of all - speaker wire is important. No, not because it'll change the quality of sound, but simply because it connects your receiver to the speakers. Simply put, you need to know how much you need for the room it's going to be in. A 250 foot roll of 14 awg speaker wire is a good way to start. Additionally, a decision on stands or mounts for any bookshelves you buy should be made prior to the decision. The last thing you want is to buy a speaker and then fail to find a place to put it because your budget ran out. Let's maybe leave around 200 dollars for these things out of the budget.
Now my reccomendation on the receiver front is an older refurbished receiver. Something like the marantz SR5004 from accessories4less.com - only $400 + shipping. Let's assume 100 dollars shipping, although I really don't know where you live or where it'll be shipped. So 500 dollars.
Now - that leaves us with about 1300 dollars to spend on speakers. Do not jump on 7.1 just yet - go for quality front soundstage first and foremost, and then some regular surrounds for 5.0
Since it's mostly for HT, I think bookshelves are indeed a better choice for you. The aformentioned ushers are a ridiculously good looking pair that I nearly jumped on myself. two pairs of those, plus the matching center, however, would leave no room in the budget for a subwoofer. Even if action movies aren't your thing, I really do suggest a decent subwoofer just because it is its own channel in any movie, plus there's important musical frequencies which those bookshelves can't reproduce. So let's start with maybe 300 dollars for a sub budget. Can't really go wrong with the HSU STF1, but it is an 8-inch woofer. I'd personally go with at least a 10 on any sub, so I say go with the STF-2 instead.
Another sub you ought to look into in that general price range IMO is a DIY elemental designs kit... if you're willing to assemble it and not deal with veneering.
Now we've got about 1000 dollars budget for a 5.0 system. That's kind of tough, luckily EMP's got their old lineup of speakers on clearance sale right now... bite on that. No they're not a top of the line company. I mean they're still very quality and all, but they're a budget daughter company of RBH. RBH's ultra-high end daughter company, Status Acoustics actually sells some speakers for like 50000 dollars, so I don't think "top of line" could possibly apply to something as value-oriented as EMP.
But they'll still kick ***. I've got some e55tis, and they've got nice highs that resolve detail without hurting your ears, great clear mids, and really soothing, wonderful lows. Those are a bit out of a budget though IMO, but their old series which may even have been better, is on for a great price.
http://www.emptek.com/special_f300t_e10s.php
now you've got some other factors to consider
- DO I need 2 subs? - the advantage of having both the HSU and the EMP sub might be much improved bass response at different places in the room instead of peaks and valkeys, but they're not matching subs on that note. I don't know how they would mesh together.
So on that note, you may want to
a) scrap the HSU sub altogether and just go with the package deal
b) contact EMP and see if they can arrange replacing the subwoofer with another pair of bookshelves
c) stick with both options, and you may still have budget money for another pair of bookshelves. Call EMP's phone number and see what they can arrange for you.