HT speaker system
You might consider starting with a 2.1 sound system and adding the center and surround channels when the budget allows. Something like the following would be a good start:
Entry level receiver: $1-200 (Yamaha, Denon, Pioneer, Onkyo, etc.)
Onix X-LS speakers: $220 new, $175 b-stock
Onix X-Sub: $200 new, $175 b-stock
This 2.1 system would sound much better than most HTIB systems in your budget. In your price range, don't worry about HDMI, connect it directly from the source to the TV. If you don't have enough HDMI inputs on the TV, get a $30 HDMI switch box from Monoprice.