for starters... you might not want to post your email adress or spam bots that search the net may find it. we can answer your question in this post.

generally you a better range of options if you do not buy htib [home theater in a box] solutions. however, the price may increase a little as well depending on what you pick out. one reason you might want to look into a set that includes a real receiver [instead of the built in dvd/br player/receiver combo] is that htib units [at least they used to] have limited inputs. a stand alone receiver unit will have more than enough inputs for any future devices you want to add.

as far as receivers go... i've heard onkyo is good for budget receivers. i've heard good things about yamaha and i personally own a pioneer. i've heard to avoid sony receivers under $500 but that is just what i've heard. personally i like sony products myself.

as far as speakers go... you could buy a speaker set like i did or you could pick a brand and buy the speakers individually. at that price range you are most likely looking at satelite or bookshelf speakers but could get into some budget priced tower speakers.

might not be available in your area but i know sears.com sold a model of sony tower speaker for about $120/pair. we have two [unamped even] and they sound great in the other room.

as far as what i use...not sure what the current usd:gbp exchange rate is but i'm suspecting what i have is more than your budget. however i will list it just as a reference.

pioneer vsx-30 receiver
klipsch quintet iv speakers [5.0 matched set]
klipsch 450w subwoofer
monster cable speaker wire [actually it wasnt a bad price]
rocketfish bananna clips [for the back of the receiver, a godsend!]
various wallplates for cable organization.

...just some things for you to think on