to continue upon the above..
make a list of what features you need and what sources you are looking to connect up as well as a few ideas of how you want placement to be. also note room size, layout and obstructions, etc. floor wiring, wall wiring, on the wall wiring or ceiling wiring for rear speakers?
generally you will be looking at a receiver, speakers or speaker set and a subwoofer. stay far away from HTIB units. you may also need wall plates, speaker mounts, speaker wire or other things like dvd player etc depending on your needs.
as far as what brands and products, you would need to list what country. assuming usa but if not usa please state and say where you can buy products from.
for usa.. my own system was just a little more than your budget and i've been very happy with it. i use klipsch's quintet satellite set paired with a 450w klipsch subwoofer and it works out well in my 14x15. we have sony floorstanders in the other room which while not as sharp were surprisingly very good for the low price paid. of course there are many other options available - i would suggest going to some places with products on display and listening to them and figure out what you like the most.