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It is absolutely easy to do. I was able to put together a system I am very happy with for that amount of money. I bought a H/K AVR125, Polk Speakers, Sony DVD for that amount of money. I think you will be surprised at how good it can perform. Of course I got lower end equipment, but I think it is great(and it is better than the nothing I had before). I will upgrade when I have more money. It is a great hobby.
I think it is more fun to go to actual stores to try out new equipment rather than shopping on the internet. I know you can get better prices on the internet, but nothing is better than seeing for yourself. I think it is especially important to listen to speakers before you buy, it is amazing how different speakers in the same price range can sound. Buy what you like and you will be happy.
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