Choosing the Right Receiver ~$500

[Ason12]

So, the one thing that's always confused me when it comes to Home Theater is audio. That being half of it is pretty sad. Now, I'd really like to jump into audio by getting myself a nice receiver and a nice speaker set up. My budget is going to be approx $1000 all together, so I think that leaves about $500 for the receiver. I know next to nothing about sound. My only concern is I don't have a ton of room. Anything you guys have for suggestions on receivers or speakers would be great. Also, if you know of any sort of guides on further educating myself on home audio I would greatly appreciate it.

Thanks!