Jon, anyone could give you advice BUT it would be according to OUR personal tastes, not YOURS.
Sooooo .......... step one; buy a dedicated magazine like "What Hi-Fi Sound And Vision" or similar for a start.
Step 2; you'll get ideas of the types of home cinema kit which will suit your lifestyle and your tastes. EG - LCD TV or plasma, etc. etc.
Step 3; ** IMPORTANT BIT ** visit a dedicated Hi-Fi/ Home Cinema dealer and ask THEM for their suggestions about your proposed system, then get them to arrange a demonstration of the equipment. Whether in their dedicated "listeining room" OR in your own home, any dealer worth their salt (and worth your money) will be pleased to arrange this.
Step 3 is especially important, as you will be investing your money and you need to be as sure as you can BEFORE you buy.
I can tell you this; for your budget, you should be able to get a well-specified quality home AV system.
Good hunting!