There aren't a lot of choices out there for "Ultra Cheap" HT. I've not personally heard it, but this has gotten some pretty good feedback.

Ventriloquist VT-12

If you add an STF-1 subwoofer with it they knock the price down another $100, so you can get all your speakers and subwoofer for $498. Add an inexpensive receiver and you've got the whole deal for about $800. Outside of those complete crap HTIB setups, that's about as cheap as you can do it.