Hi G-child.
I just got done puting together my system from Craigslist gems (hence, the moniker) for under $1400 including reciever, speakers (5) and a sub. The MSRP for the gear I have is well over $7k. The hardest thing to find is the receiver. Expect a full half to one-third of your budget will get spent on that (because of the features you are looking for). You can't always be a brand snob in this price range but you can find $2000 components for 75-80% off of MSRP if you know what to look for (people who need the money or don't care about the equipment are your huckleberries - the recently unemployed, pissed off exes, estate executors, etc.). Also, make a big deal over nicks and scratches in front of the seller. Even though it doesn't affect the sound, it helps get the price you want.
The only other advice I can give you is that if you find something awesome, GO GET IT RIGHT AWAY! Good luck! I hope you get a whale for the price of a mackerel!