You can definitely have an enjoyable setup for $1000.
I have many such systems, and enjoy them everyday. Audiogon happens tobe a very hifi forum, and not mid-fi one like sights such as audiokarma.org, so members are joking with you, but don't give up on your quest for a good sound at that price point - it might not be a true hifi, but an enjoyable midfi at least.
I think saving up for a house is a good idea - in this economic times - housing prices won't be rising for a few years time they say.
Few loved ones can understand our obsession and the amount of $ we are willing to spend to get to the sonic-nirvanah land.
Here are some options for you for under $1000.
Also, you might want to post it at Audiokarma.org - oever there, there are many who have setup midfi systems for that money.
1) Use computer as the source - upgrade the sound card to M-Audio Audiophile 2496 for $50.
There is less jitter, so the sound is good, and it's so convenient to have all of your music in one place.
http://www.hoffmanmusic.com/itemdesc.asp?ic=37344&eq=&Tp=
2) Audioengine A5 speakers are powered, so you don't need an amp. A little over $349 for a pair. Use the coupon "coverten" to get 10% off at the audioengine web sight. Buying there insures 3 year warrantee, and 30 days in home trial just incase you don't like them.
http://audioengineusa.com/Store;jsessionid=0a0110501f433a8903c90b9743dfbe82ad93106242e7.e3eSc3aPaxmLe34Pa38Ta38Nchb0
The total cost is less than $400
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Another option is if you don't want to take the time to reap all of your CD's to a computer, you can assemble this system for under a grand.
1) Playstation 1 as the CD player for $35 on ebay - make sure you get the model no. SCPH-1001. Sounds good - read this good review on it here :
http://www.6moons.com/audioreviews/leben2/system_3.html
2) Dynaco A-25 speakers off ebay for about $200.
Check this link out for other good classic vintage speakers to buy used and cheap :
http://www.audiokarma.org/forums/showthread.php?t=308519
3) That leaves about $700 for an amp - and there are many good options at this price point. You can get an integrated amp for less - or you can even get saperate pre and power amps used.
A) NAD xxxbee integrated - xxx can be many model no.s - check here:
http://nadelectronics.com/products/hifi-amplifiers
Many of them show up on used market - on ebay. When you buy used gears, make sure you get one in all working condition ! Call the seller and afirm that it will not be dead on arival, or refund...
B) Post here or at Audiokarma.org for $700 amp suggestions and you will get many good other options.
4) Hook them all up with Ixos Gamma Geometry RCA and speaker wires - affordable good wires - google search for them, and you will have an enjoyable system. You will be surprised at what you can get for little money, if you are willing to go slow and do some research on the way, instead of buying something right now.
You can even chat alive on Audiokarma.org or Audioasylum.com and ask for advices, if you are a rooky and have many more questions.
Good luck to your search for a good sound, and perhaps more importantly, to your love life...