Based on your recommendations, thats what I have come up with.
Receiver: Denon AVR-1612 5.1 75 watts per Channel Home Theater Receiver - REFURBISHED - Available at J&R for $199
Subwoofer: BIC AMERICA Eviction Series RTR-EV1200 12-Inch 475-Watt Front-Firing Subwoofer - Available at Amazon for $152
Speakers: Infinity Primus P163BK Two-way 6 1/2-Inch Bookshelf/Satellite Speaker - Available at Amazon for $85 x 2
Total: $521
Still wondering if all the above components will work together to produce a great sound.