Buddy...
In your budget, there are quite a few choices...
Just shortlist a few brands, and start auditioning them one by one...
But make sure to take your own Audio & Video CDs (Original ones)...
so that you can make out the differences....
Ones you are done with them, kindly post your experience...so that we can enhance the same into a good Home Theatre...
Brands you should look in for...:
Q Acoustics
Wharfedale
Polk Audio
Mordaunt Short
etc...
Brands you should ignore...
Bose
HTiBs (All)
and some other craps...