How do I choose a decent system?

The best thing you can do is go to two different audio-shops and have each of them assemble two systems within your price range. Then the most important thing starts: listening!!! Bring your own music, and listen, listen, listen untill you know which kind of sound suits you best. You can swap components from the different outlays, but not to much, since this wil only add to your confusion. Once you've made your choice, negotiate some kind of money-back guarantee if the ssytem sounds worse at your place then in the shop. If all's well, start saving for a lot of new music..... Good Luck!

You've got an 800-square-foot room and you're worried about the system being too conspicuous???

Seriously, it's hard to give specific advice for a very unspecific problem (maybe a turntable; maybe an MP3 player?), but the general advice I'd give is to budget about a third of your $2000 for speakers (PSB, Paradigm, and B&W all have good reputations in this price range, but they're hardly the only ones) and another quarter for an integrated amp (NAD, Rotel, Yamaha). That leaves a good chunk of change for sources--tuner, CD, phono (plus phono stage), etc.

And listen, listen, listen.

Westlake Lc4.75 Pro monitors
Bryston B60 with MM phono stage
MMF turntable/arm/cartridge package
NAD C541i CD player
MD FT-11 tuner
Rat Shack cables

I would look into Sherwood Newcastle products for your rec.
and cd player. Spearitsound.com has a R-725 for $279. The
CDC-680T CD Player would most likely work with the receiver's remote.(Check w/dealer as the CD is current model
and the receiver is not.) As far as interconnects, I'm using
Van Den Hul D-102 and I recommend highly.(Around $115 .8m)
Also AQ Quartz is a fine interconnect. A Music Hall would be a fine turntable choice.($200) This would leave you
around $1000+ for spks. and wire. To fill a room that size,
PSB Bronze spks w/Kimber Kable 4VS wire. You need to listen
to as many products, and hopefully, be allowed to audition
in your home with a return policy if things don't suit your
tastes. Do look into Sherwood Newcastle because for the $$, IMO, they are well worth the price. Good Luck, Bill.

Check a Jolida hybrid integrated for amp/preamp ($600)or a creek integrated 4330, a marantz CD6000 OSE CD player ($500), PSB/B&W/Epos speakers ($1100), definitely biwire with Kimber ($200 used), good interconnects (there are many for $50 ea used), some vibration dampers......... there are many combos, I definitely think that going into the used market may help a lot (but be patient and you will be rewarded).......Good listening