Have you considered DIY speakers? If you like a lot of dynamic capability you should consider building infinite line (floor to ceiling) arrays. Depending on your ceiling height this could mean 16 ~ 20 6" mid-bass drivers in each line and up to about 60 or so 2" or maybe more of a little smaller tweeter.
As an infinite line you don't need any delay or shading like a CBT so you could just series parallel all the mid-bass together and do the same with the tweeters and drive each speaker with just a 2-ch amp and a DSP crossover/EQ. If you use cheap enough drivers you should be able to build the two speakers, get a 4-ch or couple 2-ch amps cheap enough to have enough left over for an entry level NAD AVR with preamp outputs. In the end however I don't think you can keep that budget unless you just really go with cheap hardware. You still need subwoofers and a center speaker plus surrounds. The center would need to be pretty capable to keep up with those infinite line array mains. The surrounds not so much, you could get by with relatively simple surrounds.
NAD AVR: $600 http://www.audioadvisor.com/NAD-T-748v2-Home-Theater-Receiver/productinfo/NAT748V2/#.Us4RirTgxrM
2-ch amp $500/ea http://shop.emotiva.com/collections/amplifiers/products/xpa200
Looks like already this is not going to work since we're at $1600 and haven't bought the DSP's yet or even started the speakers. Even using these $7/ea 5" drivers http://www.parts-express.com/5-paper-cone-midbass-shielded-woofer-8-ohm--299-006 will put it over budget.
A more conventional build idea might work using a pro-audio 15" woofer and horn loaded compression driver. These can be 100+ dB 1w/1m so you could just drive them with the receiver and not need the external amplifiers.
The CBT 36 kit would be a nice option for home theater but the kit alone without amplifiers equals your budget... http://www.parts-express.com/audio-artistry-cbt36k-line-array-speaker-kit-pair--301-980
If you could find a good deal on some old Altec Model 19's or A7's that would be a good option but you would have to find someone trying to get rid of some not having any clue what they have... otherwise they will definitely be over budget.
If you can save up or mortgage the house, the floor to ceiling line arrays will do the best job. Here are mine... http://www.mfk-projects.com/theatre_main_speakers.htm For the center I highly recommend a CBT http://www.mfk-projects.com/center_speaker.htm but again, way out of budget just in cost of materials. Thing is, these type systems are not just loud, they also have superior transient response over more conventional designs. Even at modest listening levels the transients are so fast they make people jump. If that's the kind of performance you are looking for, infinite line mains and horizontal CBT is the way to get it. Unfortunately it's just not available commercially and would be astronomically expensive if it were so you have to build it and these are not trivial builds.
mk