I like the Pioneer Elite EX-500. I found it for $240 at something-tronics... can't remember. They sell it at Costco. It's a receiver and dvd player combo. However, I think the DVD is completely separate so you could probably sell it for $100 and have an HT receiver for about $140... leaving $150 for speakers... woo-hoo.
The speakers are terrible with HT in a box. The 'best' I've heard was a Panasonic but I think it was a little more than $300... can't remember. They had it at best buy.
Do you want an Aiwa HT mini system? I know where you can get one of those cheap.

3-cd player, tuner, dual cassette, karaoke, the works!
-C