Personally, I do not care for HTIB systems, I find I can easily get better components by shopping for each individual piece.
So if I understand this correctly we are dealing with just the TV (unless you spent THOUSANDS on your 13 year old receiver that plays modern forms of surroun sound).
DVD: I would recommend the SONY DVP-Ns575P. This unit supports your DTS and Dolby Digital formats and can be had for under $90.
Receiver: Since your funds are limited you need something on the cheap side. For this I would look for good deals on a clearance. Here is some suggestions:
-Pioneer VSX-D812K: 6.1 and plays most of todays surround formats (exception THX). You should be able to find this unit for around $250
- Onkyo TX-SR501 : 6.1 and also plays a wide variety of formats. Once again should be able to get for no more than $250
-Yamaha RX-V450: Once again 6.1 and most formats
**these are my personal top 3 choices I leave the decision which one you like best
So far we have spent around $350 so we have $650 left for your speakers.
1) you might have to shop around but you should be able to pick up the Infinity TSS-750. For the price of around $650 this unit is fantastic. This would keep you satisfied for a long time once in your bedroom. Also, it should perform in your living room admirably.
Just a note, I helped a buddy of mine with surround sound (Unlike me he is not willing to spend over 4k on a system. I cant see why!!) Anyway, we spent about 2 months researching, listening, and trying them at his house. We tried Sony, Polk, Boston Acoustics, JBL, Onkyo, Pioneer... and plenty more all w/in the same price range. The Infinity hands down were the winners. I was extremely impressed with package. It is ideal for movies. If you want something else you will have to choose your own!!
Anyway good luck and hope this helps. Just remember RCA cables work just as well as Monster and are far less. The less you spend on wires, the more you can spend on your components!!