Easy to please
The great thing about not having any experience with audio or home theater is that whatever you get will sound just fine, if not wonderful. Asking audio nuts and home theater enthusiasts for first time recommendations is a good strategy, but, they, like me, will want you to spend more money to get better stuff. My recommendation is to stick with your original budget, purchase decent equipment, and then, as you get more experience with the sound and other technology that you want, upgrade as you replace the aging technology. The technology ages at an increasingly rapid rate, too, I might add.
In the speaker and receiver sections of these forums, contributors make lots of recommendations at all price points. Listen to and price speakers at the local version of your audio superstore, and then go to a high end audio specialty shop and do the same. You might find that the high end shop can compete price wise in some areas and you'll generally get equipment that has some audiophile credibility. Your ears are the judge. Good luck, it'll be fun.