Im not a big fan of shelf systems. Most have horrible sound and if one thing crpas out like the cd player you have to take the whole thing in to get repaired.
Do yourself a favor and go to jr.com and look at some of the inexpensive Onkyo gear. Refurbs can save alot of money and you get a warranty. Then look into a cheap DVD thats under a 100 bucks then go out and get yourself some Paradigm Atoms. All of this can be had at 500 or less. You will then have something that sounds a hell of alot better than a shelf system.
Onkyo TX-8011 or TX-8211 would be the models to look at if you can swing more I would go with one of the HK stereo receivers. Lots of clean power and there relatively cheap. 3370 or 3480 would be the model to look at.
Paradigm Atom Speakers - Go to paradigm.com and do a dealer search. These must be purchased from an authorized dealer.