first off, here is my recommendation, dont go full surround system right off the bat, get a good 2 fronts and build over time...you will have a much better system and that will upgrade more easily...
the rest of my suggestions is based off of your $1300, this assumes you dont need a tv...if you need a tv, then this will be fairly different...
dvd player Onkyo 301 $130 (dont spend more on a dvd player for a $1300 system)...
you should be able to get a refurbed H&K 225 for under $300 on ebay direct from H&K..full warranty...
http://cgi.ebay.com/ws/eBayISAPI.dll...tem=3057403501
thats about $500 between the onkyo and the h&k including tax and or shippng...
this means you ahve about $700, as you have to leave room for cables (go cheap)
you probably could put a great system together through the harman direct on ebay, by getting the infinity il series...not sure what the il50's or 40's go for, but i feel that they will be under $400 a pair, and I know you can get the il10's for rears for about $125 (i think i got a pair like that for $117)...
actually someone has the il40's for $395 a pair brand new...i would try to win an auction on the 40's or 50's though...then you just need a center...you definitely can get the 25 or 36 for the remainder...
if you want to buy one package all together...
http://cgi.ebay.com/ws/eBayISAPI.dll...category=32861
but you will need to get stands....
but i still say, get the other two pieces i mentioned and spend the remaining $500-700 on a pair of fronts, maybe something like the discounted axiom m60....
Rich