With a $1K cap, I'd probably take a look at the SVS SBS-01 package, possibly with a subwoofer upgrade to the PB-12NSD, unless more severe bass isn't required (the PB-10 will do well already). That is a pretty good size room and will require a decent sub for good bass, and I'd sell the Sony sub on eBay... That whole package will still run you about $1K shipped I believe.
For speakers only, check out
www.ascendacoustics.com ,
www.axiomaudio.com , and local dealers for
www.paradigm.com or you can just add the SVS speakers to the existing sub for a lot less -
www.svsound.com
What is the model of that receiver? 980w doesn't tell us enough; that is a marketing fluff type of rating that doesn't really tell you anything about actual capbility of the receiver.