I think I have to back up Fantom_Circuit here. I agree totally with his comments - a 2 channel system at that budget will slaughter any cheap 5.1. The bass on those Logitechs (yes I have heard them) is definitely muddy. They don't go very low, and there is a massive peak at about 200-300Hz (according to my ears) that give the impression of strong bass output but it really isn't. There isn't very much <200Hz. And you can't equalize them out either, because it is built into the design of the subwoofer (resonant frequency around that range). Midrange is missing (as other posters have said). This is because the satellites are too puny to produce a proper midrange, so the subwoofer takes over part of the job. Midrange is bloody important - without a proper midrange, voices, guitars, etc will sound unnatural. A 2 channel setup will have a much more linear frequency response curve. When you first hear them, you may think they do not produce as much bass as a Logitech, but that's not true. They simply lack the midbass hump that Logitech engineers into their speakers. They will go lower and in a more controlled fashion than the Logi's. Add to this, your money is buying you two high quality speakers instead of being spread into 6 terrible speakers. Nobody so far has mentioned the other great advantage of seperates - they grow with you. If you buy a seperate amp and speakers, you can grow your system as budget allows. I started off with my first system 18 years ago, a secondhand NAD 3020i ($200) with Mission 760i speakers ($250). Over time I made incremental upgrades until my system is what it is today. You can't do that with the Logi's ... when you become unsatisfied with the sound (as you invariably will, once you listen to some other HT's) ... you have to junk the whole thing at a massive loss and start all over again. My recommendation for $1000 - look for a secondhand NAD320 and any decent cheapish bookshelf. Epos, Mission, Krix can be found on the secondhand market for maybe $300-500. For the record, I have Logitechs. They do a very good job for what they are designed to do ... play "TA-DAAAA" and other windows noises in full surround glory. But there is no way I would put them in the lounge. I don't have an axe to grind. You came here asking for advice, and i'm giving you what I think is good advice. Best of luck.