JVC RX-ES1sl 100 wpc 5.1 digital hybrid receiver (street prices down to $180) with Ascend Acoustics CBM-170 two-way standmounted speakers for $329/pair available on-line at:
http://ascendacoustics.com/The Ascend site has links to glowing user and professional reviews. The digital/multi-channel circle below currently has a 15 page thread of raves for the JVC.
This should leave you with enough for stands/wall brackets, interconnects, and speaker cabling. Add a sub later if you like (based on your tastes and room size), but this would make for the foundation for a very good audio system or killer home theater system.