In my experience.. I have found a good two channel system more satisfying than a mediocre multichannel system. I enjoy listening to my BP7000SCs in stereo more than any $1000 surround setup I have heard, including the sub/sat system I own. Someone said to start out with the 3 main speakers (center and left/right fronts). That would be my recommendation as well. My first introduction to audio was a sharp rack system my family got. It had 3 way towers with 10 inch woofers which at the time I thought was a really good thing. I think it cost them about $800 back in the day. I don't think it lasted 2 years before components started to break on it. I realized then the value of buying things separately. I also wouldn't recommend the HTIB option just because you get higher quality products when you buy things separately.

IF I were buying a system for $1000 with a cap of $1200... this is what I would buy:

Yamaha or Denon receiver in the $500 range.
If you have to have a sub/sat system the energy system take 5.2 has gotten good reviews, and so has the DefTech procinema80.6. I think the procinema80.6 is $900 retail but you can usually get deftech products for 20% off retail.
However I would recommend maybe getting a good pair of towers, and building your system as you go. Many manufacturers have towers in the sub $1000 range. I like th BP10Bs I use as surrounds (I used them for fronts in my apartment). I picked them up for $660/pair. With good amplification they have plenty of low frequency sound and are very spacious sounding. They are bipolar, which admittedly some people don't like but I love bipolar speakers and all of the people who have listened to mine so far have liked them as well. I'm sure you can get some other tower options in the price range from some other people here.

It was a little disappointing to see the thread go the way it did. I do agree that Hershon's system is basically a HTIB but his love for the speakers he owns shouldn't discredit his opinion of them. After all I think we all give opinions of speakers that we love and his setup did technically meet what blues was looking for. In the $1000 range the orb/jvc combo was probably the best system Hershon found that suited his tastest and needs. Countless people on this forum swear by their hsus, svss, deftechs, etc. but when it comes down to it it is all a matter of opinion.