Home Theater System Advice?

If I were you I would go for a PA system hybrid.

Get 2 sets of TINY powered stereo computer speakers from Radio Shack for the treble (over 1000hz) surround sound channels for about $30.
Then get a good beefy $100-$125 100 watt amp (also from Radio Shack) for the SUB woofer and a massive 15" woofer from them for about $75.

Since your ear only hears directional sound over about 1000hz, you will get about as much stereo accuracy with this as with a much larger system. And, trust me, the 15" and 100-watt amp combo is loud enough for small club use...has TONS more power than even pre-built $400 surround system.

BTW...I know I sound like a spokesperson for Radio Shack, but the fact is they seem to sell PA equipment for about 1/2-1/3rd what I have seen for the exact same level products from pro-audio PA dealers.