Do you plan on just sticking with a 2.1 setup, or are you looking for a possible surround setup?
Also, if you plan on sticking with components from your local electronics retailer, you are probably looking at something from Polk or Boston Acoustics in this price range.
For a 2.1 setup, assuming you have your hdmi signal and your digital audio signals seperate, you can go with the following:
Pioneer VSX-816-K Reciever - ~210$ (may need to have this shipped due to availability)
Boston Acoustics VR2 Tower Speakers - ~230$
Boston Acoustics XB4 Subwoofer - ~280$
Assorted cabling/hookup - ~80$
That should bring you to about 800$ before taxes/shipping. Prices were picked up from Circuit City, as they have a 10% reciever/speaker promotion right now. I would have put in Polk speakers, but their promotion excludes them. The Pioneer reciever is not available in my local stores, but it is indicated on the website as an in-store pickup item, so they can special order the unit to be sent to that store for pickup.
Also, if you plan on picking this up from your local store, you will need to stay away from sales people who try and sell you monster cabling and high-end power filtering equipment. Buy Nexxtech brand cables if you can. They are significantly cheaper and perform just as well.
There are probably options through other retailers, so I would shop around a bit and see if someone doesnt have the same/similar products at lower prices.
As far as quality goes, I believe you will be very happy going from a 321 setup to this. The reciever adds tons of flexibility in your setup, especially if you want to run alot of component sources (xboxes, ps3, dvd, etc). Boston Acoustics speakers are excellent in this price range, and I think you will be surprised at the difference in sound quality and power.
Btw, Welcome to the Shack!
