ONIX X-Series Speakers from AV123
(4) X-LS Bookshelf Speakers = $438
(1) X-CS Center = $139
(1) X-Sub Subwoofer = $199
Total = $776
Very Well reviwed speakers from a very well respected ID company. The Speakers are still realtively small without sacrificing fidelity for aesthetics.
Athena Audition Series (@Audio Advisor)
(2) Athena Audition AS-F1.2 Tower Speakers = $249
(2) Athena Audition B1.2 Speakers = $100
(1) Athena Audition AS-C1.2 Center Channel Speaker = $100
(1) Athena Audition AS-P6000 Subwoofer = $270
Total $719
OR
Athena - Micra 6 Home Theater System
Total $400
Depending on room size, aesthetic preference and performance needs, one of these two Athena systems is might fit the bill.
Aperion Audio Intimus 422 Harmony System
(4) Intimus 422-LR Satellite Speakers
(1) Intimus 422-C Center Channel Speaker
(1) Intimus S8, 8" Powered Subwoofer
Total Package Price $799
Another well repected ID company offering an alternative to miniature cube speakers with higher fidelity.
Ascend Acoustics HTM-200 and
HSU STF-2
(5) Ascend Acoustics HTM-200 Satellite Speakers =$608
(1) Hsu STF-2 Subwoofer = $349
Total $957
A good candidate for a modest surround set up. The 5 identical speakers will ensure a nice seamless, immersive soundfield for movies.
Axiom Audio
(4) M2v2 Bookshelves = $592
(1) VP100v2 Center = $255
(1) EP125v2 Subwoofer = $430
Total $1277
A slight bit over the budget but definitely a giant leap in quality from the BOSE. You can qualify for a 5% discount off of the entire purchase price if you buy a full setup.
In any case, these are just a few examples of sytems that fall close to the target budget...there are a whole lot more offerings out there. One could even mix and match components or pick up a more powerful sub (if one were so inclined).
Anyway...good luck and happy shopping.