Need ideas for a decent home theatre setup under $1k

Because of the horn tweeter, placement of Klipsch speakers is critical, you need to have the horn aimed right at your seating location. I'm using Polk Monitor II model 70 speakers, placement is less critical and you don't need a subwoofer. You can usually get them for $199 each on You can use smaller Polk model 40 speakers for the rear. I strongly recommend a receiver with a microphone based equalization system. I have an older Yamaha with their YPAO equalization system. Any receiver with Audyssey would be great. Go to manufacturer's websites, download and read the manuals while evaluating receivers.
The new Pioneer speakers are excellent value. But I'd skip the sub & look at a bigger $200-300 model from BIC, Hsu, NXG, etc.
Here is what I'd do.

I'd go to Polks ebay website and try to snag some RTi A or RTi speakers. I'd look for the following:

Fronts: RTi A3 or RTi6
Center: CSi A6 or CSi5
Surrounds: RTi A3, RTi5 or BEST would be FXi A4 or FXi A6

If you buy from Polks ebay site, its from the manufacture, comes with a warranty and is a VERY low price. I bought a soundbar from them for 1/2 regular price, came in the original box, packaged perfectly, couldn't tell it wasnt new.

For a sub, your gonna have to go cheap. I'd just pick whatever of these you can afford. Polk sub's arent the best out there though, so check your local CL too. Other good Internet brands are HSU, Outlaw Audio, SVS (out of your range), PSA (out of your range).

For a HT reciever, I'd go to Accessories4Less and see what you can get for what you need. They are manufacture authorized refurb sellers so you also get a warranty of 1 year from them which is nice.

You just need to know what you need. Most will do HDMI, lossless audio and at min 5.1 or 7.1. I'd go with a Denon or Onkyo personally over a Yamaha, but thats your call.

Anyway my .02