Stay away from HTIB. you'd be better off long-run getting a decent receiver (Pioneer makes good ones that aren't terribly expensive) and piecing together speakers as you can afford them. Start with a pair of front speakers and a matched high-quality center speaker (important as 90% of your audio including dialogue comes through here), then add a decent sub, then complete it with the rear and (optionally) side surrounds later. Quality speakers can do so much more for a home theater than even surround sound can, as you'll hear things you won't with lower-end speakers. Energy is one company that makes good speakers at a really good price point. They're canadian and I believe owned by Klipsch.
If you want Blu-Ray and want to experience all it has to offer, you'd be doing yourself a disservice getting HTIB and not being able to truly enjoy the lossless sound.
Originally Posted by KingGator81
I got a Bose system that works like a champ for $300 at a pawn shop. May want to give that a shot.
not to be rude, but there is a reason audiophiles say "no highs, no lows, must be Bose." You can generally get much better sounding systems for less.