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...
big10purdue
i would lppk at some of the internet brands............ axiom, hsu and the like that offer potentially better value and offer a thirty day trial in home. make sure you can try at home due to the uniqueness of your space. make sure to move the setup around to see what different locations sound like. make sure your electronics are the best you can afford as well, but imho the speakers should represent at least 50% of the total, if not more. look at the power and current of your amps and how they might match up to any speakers. do the best you can to get used, the opportunity to get the discount allows for better quality.

do not be afraid to start with a 2.1 setup and move up later, stereo with a sub can produce great home theater.
After looking at a few other posts, I should probably give a bit more information. The speakers are going to be setup in the basement (~23x12) and the components that I currently have are a Pioneer Elite receiver and a hand me down Hafler amp.

Thanks
Used options are many but I wouldnt go low end Klipsch. Internet sellers are an option so are Vandersteen, Def Tech, and too many more to list.....what you need to do is get out and demo more models if possible then members can maybe steer you in better directions but if I were to start with that budget I would seriously look into the current DCM speaker as its really great for the cash.
in that room I would find some Definitive Technology BP7004's and a DefTech CLR2300 center channel, all used here on Audiogon. That would be your $1200 and would include the subs which are built into the BP7004's. If you liked the other systems you mention, this will blow your doors off.