I highly recommend to look at the Klipsch Reference line at Good Guys. They make excellent HT speakers because of the outstanding dynamics that horns can provide, not many speakers can duplicate that.
They have a unique sonic signature that people usually love or hate, so I recommend you take a listen for yourself. I bought the RF-3II, RC-3II, and RS-3II locally for $1350, add in a subwoofers from SVS, Adire Audio, or Hsu Research and you'll be on your way to a great home theater.
My choice for subs would be the SVS 25-31CS Plus for $775, it absolutely rocks! http://www.svsubwoofers.com/subs_pcplus_25-31.htm