waterwalker4,
With that budget, you can get quite a whopping system if you play your cards just right. Remember that there are a LOT of different brands of speakers out there, and you will like some better than others. While some people will tell you they like the sound of one speaker, someone else will say it sounds terrible. Room size and shape, listening position and even listening habits all play a role in what you should get.
That said, I will start with recommending something similar to what I have. I have spent just a bit over $6000 so far, so some of the stuff I have done may be out of your budget, so pick and choose what you can do for now and if you can wait a bit, you can always add to it later as you get a bit more cash to push towards it.
I would say the first things to really focus on would be the two mains, your sources (DVD player, CD player, etc), your pre-amp/power amp, or receiver, and cables. I would say spend most of the money on those, and just buy some sensible cables. Blue Jeans actually does sell some really good quality, sensible and reasonably affordable cables. If you don't want to mess with that yet, go get some Monster XP cable as a temporary solution and then enjoy it later when you are able to get some better cables. The sub would be the next thing to get followed closely by the center and the surrounds.
Remember, what exactly are trying to accomplish? Do you just want to have something to show off and say, hey look I have 7.1 and you don't, or are you looking for something you want to just enjoy on your own? Do you listen to much music, or will this be for movies mainly? For me, it was mostly music, but with a strong desire to watch great movies once in a while. If I was't going to watch the movies much, I would have stayed with just two mains, and a sub. Music does not need surround speakers unless you are going to get into SACD, DVD-A, DTS-Music etc. (it's quite worth it, I tell ya!) I don't see any real need for anything more than 5.1. 6.1 you may find periodically, but I don't think I've EVER seen a DVD movie in 7.1 sound. The newer HD versions supposedly have that capability too, but I don't know if there are any on the market yet. As long as you place your 5.1 speakers correctly, you will enjoy it very much, don't worry about it.
You mentioned Pioneer Elite and Axiom. Both are good brands to get. Look into some other ones too. Denon is a good brand, Marantz is also. There are other good ones out there too. I prefer Marantz personally.
Do you want a receiver or a separate pre-amp and power amp? I would say separates is probably more versatile in the long run, possibly better sounding, but also possibly more expensive too. If you just want something simple, and still powerful, a good receiver will do well.
Make sure that the speakers you get can be run by the components you buy. For example, some receivers are rated to only go down to 6 ohms. While most speakers are 8 ohms, some are 5 and 4 and some even can go down lower than that. My personal favorite speakers are the Martin Logan brand. Though those speakers may bust your budget just for the two mains, you can get the lower end ones like I did for a better price. I got two Mosaic's for $1500 after discount and taxes. They have been discontinued, but you may still be able to find some still at some stores, or even on Audiogon. Planar and ESL speakers can sound incredible as long as you power them well enough and place them well enough. But not everyone likes them, and I'm sure some people will reply to this and say stay away, but don't knock it till you take a listen, you just may like it. For a cheaper alternative, I've never heard Axioms speakers, but I have heard they sound good. Paradigm makes a darn good speaker, maybe go with one of their studio series bookshelves and get a good sub to go with it.
For subs, there are a lot to choose from, I've never actually listened to an SVS, or an HSU, but they seem to be highly regarded on this forum, as is the Paradigm Servo 15, though I would avoid the lower end Paradigm subs. I've heard them and was not too impressed. I prefer the cleaner sound of subs with servo's in them, such as the Paradigm, or one of the Martin Logan subs. I own the Grotto 10 inch, and couldn't be happier. Give it a good source, and let it go. One issue with subs with servos though is that they can get expensive. Mine was over $1K by itself. That will chew through your budget, but like I said, if you need to start with the basics, and spend your money on that and add surround speakers later. That's sort of how I did it. Though I ended up putting my original mains in back as surrounds, and it works pretty well. You can check out my system in my signature if you want.
Let us know if you have further questions.
-capT
