You could either get full-range tower speakers or some bookshelf speakers and a subwoofer. I think you will get a more visceral experience with bookshelfs and sub, so I will recommend a few of each.
speakers:
Behringer 2030p
Infinity Primus p162
SVS SBS-01
Tweakcity WAFs
TSC TSBL 6.5
Behringer 2031p
Those speakers all look like they would sound great, and I don't think any of them are over 250 even with shipping.
Here are some subs:
Elemental Designs A3-250
BIC Acoustech PL-200
Hsu Research STF2
SVS PB10-NSD
If you are willing to use a screwdriver, here are a couple DIY subwoofer kits that don't look so bad:
Dayton C1500 15" subwoofer kit
Dayton T1003k
If you can make a little extra room in your budget, I strongly recommend
this sub, the ED A3-300. It would be a serious step up from all the others listed above.
As for receivers, on your budget, you should consider looking on criagslist or ebay. There are a lot of decent receivers out there for sale from 50 to 100 dollars, and they are only being unloaded because they don't have HDMI or some new feature. I would say just hook up HDMI to your TV, and if it has a digital audio output, use that to connect it to the receiver. So for simple setups like yours, you don't really need HDMI on your receiver. Another good place for inexpensive receivers is
accessories4less, they sell refurbished and discontinued receivers for a very good discount.