HT system for 3500

Looking for suggestions at what apparently is a beginners budget on HT in family room for the wife and kids. They watch a lot of movies. I have decent two channel system (Plinius 8200, Dynaudio 1.3se) in my listening room that I want to keep separate I think. However, it would still be nice to listen to music as well on the HT.
Exactly what are you looking for with this budget ? Do you already have a TV ? Did you want to include VHS ? Rack ? Size of room ? Type / size of speakers ? New or used ?

While we can throw out various combo's that might work in your situation, you'll probably get some better info if you help us along a bit... : ) Sean
If you can find my Virtual System "Decent Home Theater on the Cheap." it would be a good place to start.
Sorry! Sam's Club system would probanly make wife and kids happy, unfortunately for me I am in the way of my wife being cheap and would like to listen to music on that system. Have TV. Don't need VHS or rack. Room is fairly big 24'x24'. Used is OK.