Thanks a lot for the suggestions! I'm shocked that it's actually feasible to build a HT-setup under $500.
The speaker suggestions look great, but any suggestions on a receiver? It's the one component I fear the most, because I have no idea what things to look for. I ain't looking to play Blu-Ray through this setup -- mostly games and DVD-movies -- so there's little need for TrueHD or any fanciness like that. Plus, I probably won't be running this system loud at all, so I guess wattage-per-channel doesn't need to be very high...? I don't know.
Any suggestions for a receiver, or at least how much I should theoretically spend on a receiver? Thanks so much!
Someday, if I get into med school, I'll get Magneplanars or something... but for now, I'm really just trying to get the best bang-for-the-buck with $500.