Speaker system
With a few exceptions you will be limited to HTIB systems with satellite speakers in your budget. You might be able to put a system together with Athena, BIC, or other budget bookshelf speakers and a sub in your price range if you look for deals.
Otherwise, I would recommend starting with a 2.0 or 2.1 system and adding the center and surround channels when budget allows. In the $2-400/pair range there are plenty of great bookshelf speakers. The new Emotiva speakers just got a good review if you value performance over astetics. I just got a pair of AV123 ELT525 bookshelf speakers and you wont find real Cherry or Rosewood veneer on many other speakers in the $300 price range.