I too think that SVS system will do you good, plus that sub will destroy the Klipsch unit.
I also recommend the 170SE package from Ascend Acoustics. It totals up to be $788 plus $56 for shipping. That leaves you room for a quality subwoofer from SVS, HSU, Elemental Designs or AV123, plus enough cash for a receiver (Pioneer, Onkyo or the new Yamaha's are great choices).
Other sites to check out are AV123 and Aperion Audio. They both have a number of smaller bookshelf packages within your price range.
AV123, Aperion Audio and Ascend Acoustcs are Internet Direct companies, so you cannot audition before you purchase. However, they do offer a 30 day in-home trial period, so if you don't like them you can just send them back for a full refund.
Klipsch is a "love it or hate" sound. However, if you like them, go for it. Only your opinion matters.
Good luck.