So I'm looking for a Home Theater System...

[Vetteman94]

I would go for something on the order of this with your budget.

Klipsch 5.1 HD Home Theatre setup - includes Sub, Center channel and all 4 satellites

http://www.bestbuy.com/site/Klipsch+-+HD+Theater+500+5.1-Channel+Home+Theater+Speaker+System+with+Powered+Subwoofer/9385747.p?id=1218096162766&skuId=9385747&st=klipsch%205.1&cp=1&lp=1

Yamaha 7.1 A/V Receiver - It has all of the HD sound codecs, not all receivers have this. It is 7.1 but thats alright you can use it as a 5.1, mine is a 7.1 and I did. Plus you can then later expand you setup with a couple of nice towers like I did as well.

http://www.bestbuy.com/site/Yamaha+-+630W+7.1-Ch.+A/V+Home+Theater+Receiver+-+Black/9785073.p?id=1218173773915&skuId=9785073&st=reciever&cp=1&lp=15


Sony Blu-ray Player - This one is a easy decision, Sony Blu-ray players are the best in this price range.

http://www.bestbuy.com/site/Sony+-+Internet+Connectable/Wi-Fi+Ready+Blu-ray+Disc+Player/9740471.p?id=1218165049301&skuId=9740471&st=Sony%20Blu-ray&cp=1&lp=3