I assume you are watching TV through a TV and not your computer monitor. If this is correct then I agree with the others and suggest spending the extra $100+ on the SVS and a decent receiver or starting with a
quality 3.1 system and adding the surrounds when you have extra money. We also have no idea how big the room is so it's impossible to know how much sub you'll need. But something to keep in mine is long term value. The SVS bundle that someone suggested is a 10+ year investment. If you grow into a bigger home with a bigger room you can keep the speakers and just add a second subwoofer to fill the larger space. On the other hand I think most people with a good ear outgrow a HTIB in a couple of years.
But let's take a whack at seeing where we can save some money. Note that these next two ideas will work as either a living room system or killer PC speaker system. You can pick up a factory
refurbished Onkyo TX-SR606 for $300 plus shipping. I bought this exact refurbished receiver for my master bedroom and it's pretty slick and comes with a one year factory warranty.
Option I:
I'll channel JerryLove and suggest 2-3 pair (for 3.1 or 5.1 and keep the extra as a spare) of Behringer B2030P studio monitors for $130/pr shipped from Amazon. Jerry convinced me to try them for my home-office and I like them. So that's $260-390 for left, right, center and perhaps surrounds. But they will need a subwoofer.
Low cost bookshelf speaker comparison.
Assuming your room is less than 3000 cubic feet you can pick up a
Hsu Research STF-2 subwoofer for $350 plus shipping. Hsu makes great subs and that gives you a quality 3.1 system for $900 plus shipping. Then add the surrounds later. Or some DIYers on here may suggest a Dayton subwoofer or Dayton kit but never having heard one I'll refrain.
Option II:
If that just doesn't work for you then you can look into a set of open box 5.0
Klipsch Quintet III micro satellite speakers for
$225. That leaves you about $450 for a good subwoofer (Hsu Research

) and shipping charges. I like the Behringers better but these little satellites rock when combined with a good sub
and set them up as a 5.1 system
correctly. The Onkyo TX-SR606 will make that easy.