Sound system
You have a decent budget for your HT sound system. For inwall or onwall speakers, check out the MC line from RBH sound. They are normally sold through dealers, but they have some good prices on audiophileliquidator.com.
Axiom Audio and Paradigm also offer on-wall speakers in your budget that would work well.
Depending on you video needs, look for a Yamaha RX-V2600 or 2500 or a comparable Denon model.
Lastely, check out the 10" and 12" subs from SVS, HSU, and Onix Rocket (av123.com) to fill in the low end.