Speaker advice

Ok... so I am pretty new to the whole high end audio setup and had a couple questions. Please keep in mind that my budget is fairly limited and my expertise is on the elemetary end. So, I'm looking to you guys for help.

It appears that each time a friend or relative gets new speakers/surround sound, it sounds more amazing than the last person's. For instance, My uncle has a Klipsch RF-82 setup with surround sound etc. I thought it sounded absolutely amazing. My buddy is rocking Focal Electra 927 limited edition... which are awesome. My questions is, with my budget of about a thousand dollars, am I better off with low end Klipsch (RF-35) or saving up a little more and trying to score a used set of Focals (obviously not 927's)? My absolute max would be around $1200 as I can't justify any more spending... not having a great familiarity of what I'm buying (opposed to what I'm hearing). Any advice would be appreciated and sorry about the wordy post.
FYI... this would be for music (jazz, classical, rock) and home theatre, as well. I would pick up the remaining surround sound components as my budget allows.

Thanks...