Onkyo TX-SR805 (no sales tax unless in VA)
...for the price, this receiver is tops.
MIRAGE Nanosats can be hung from the ceiling and are of excellent quality (much better than BOSE).
and for a subwoofer...
Acoustech H-100 Cinema Series 500-Watt Front-Firing Subwoofer
probably the best performing sub in its price class. Will definitely hit all the low's and then some!
...although this is just great ideas for a modest budget, you could get better but would cost more.