What is the best HT 5.1 system 2k

First, since this is totally subjective (everyone, including pro reviewers has DIFFERENT GEAR!), and you didn't mention about the room setup, acoustics, or listening/viewing lifestyles(do you listen to music, or mostly movies?...What kind?...how loud?...do you move around the house when listening to music, or strickly sitting in one spot?...multiple seating scenario, with multiple listeners/viewers, or is it just you?...do you view movies in the daytime as well as a darkened night room?...what's the lighting scenario like?...must you have small speakers mounted on walls?...two channel dubties vs. multi-channel?...sacd/dvda???...yada yada, etc.)
Yes, all this makes a HUGE difference in the options you will need to consider, and the direction you will go!
For instance, I wouldn't recommend THX or more directional horn loaded or planner di-polar speakers for a scenario with either a wide seating setup, or where you listen to the system while moving around your house for music enjoyment!!! And yet there's lots of system options that could utilize these types of speakers for certain applications. So it depends on the variables.
You haven't mentioned about YOUR variables. So, to do it even remotely close to solid, in terms of recommendations, these issues and specific needs must be adressed. So based on your blanket question, there IS NO BEST SYSTEM, AT ANY PRICE!! Sorry. What will be the best for one, will not be the best for another person, scenario, or life-style. And that my friends, is why people who simply read magazine reviews, or hear/see some products set up at the local av store, go buy it, and either set it up in their home, or even have someone install it for them, ALL END UP WITH LOUSY, MEDIOCRE AT BEST SYSTEMS, that they could have gotten the same kind of results with any cheap "theater in a box" or flat screen TV experience!!!!

P.S....need more input

www.av123.com has some good systems in your price range.

If you are inclined, you could build your own and get a lot of bang for the buck.

The system will be used primarily for movies 85%, the balance as radio/cd. The room size is 14 x 19 with only three walls and open to large kitchen area. The ceilings are high (vaulted). I have looked at PSB speakers - B25 (L/R channel) and maybe the T45 or 55 as mains with the complimentary center channel. The second set-up would use Revel products F12, M20 and center. Can a receiver be used to bi-wire these speakers?

Bi-wire yes. Bi-amp no.

Eldarado, can you elaborate on your recommendation? Have you heard any of AV123's offerings? I checked out their web site and they seem legit. I wonder if their products are any good?

I have heard the X-Series and Rocket series from av123 and it has a really high bang for the buck ratio. For HT they are outstanding.

Look at Ascend Acoustics in your price range. The lead at Ascend is a former M&K designeer/engineer.