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For non HD use a non HD input on your TV. That will remove the bars. Then you can adjust the picture quality on the seprate inputs.

It really does not matter how good someone thinks their TV speakers are, the fact is they are all poor quality compaired to a seperate center channel speaker. Its just better to cough up the extra cash.

On that budget (or any budget) I would go with Klipsch. He can get 2 RB-15 (L/R)$299 pr 1 RC-25 (C) $279 EA 2- RS-25 (Rear Surrounds) $199 EA and 1 RW-10 (Sub) $500...grand total for this great system $1476... The value for the quality can not be beat!