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Surround sound is one of the keys to a successful home theater setup. Do you have the spend thousands at Bose or Cambridge soundworks to get the effect you want? No way! There are tons of websites that sell discounted surround sound systems that give you the sound you want for a price in your budget. You can even get the brand name you want like Sony, Klipsh or RCA.
A good modern surround system should have small surround speakers, center speakers and a sub woofer at the very least. You also need to make sure you have a receiver that is compatible with surround sound so you can properly configure the balance of sound for your movie watching pleasure.