Hi there! This is UK based forum so little tricky to know all the options in your country, but i think with so tight budget you should look in to ID brands (internet direct that offers home trial) if you can still consider normal size bookshelf speakers. In-ceiling speakers wouldn´t be ideal as the sound would come overhead. This is how it (5.1) should look like ideally regarding speaker placement:
Use our speaker placement guide to optimize your home theater with 5.1. virtual speaker setup with Dolby Atmos sound. Enjoy your entertainment in Dolby.
www.dolby.com
So with that in mind you could consider in-wall speakers if you want them to be more "hidden" and cleaner look. HTD has few models with great feedback!
Front three:
DetailsThe HDX-W65 is an exceptional pair of in-ceiling speakers. It is ideal for use in most mid-sized rooms, both for home theater and for high quality whole-house audio. The 6.5" aluminum woofer produces warm mid and low frequencies and the anodized aluminum tweeter blends nicely to produce a...
www.htd.com
DetailsThe HDX-W65 is an exceptional in-wall speaker. Sold here as a single speaker, it is perfect for the center channel in a surround sound setup and for use in whole-house audio where only one speaker can be installed.In home theater, it is often used in height and surround locations, and...
www.htd.com
Or larger more capable model with 8" drivers:
DetailsThe HDX-W80 is an exceptional pair of in-wall speakers. It is ideal for large rooms (200+ square feet), rooms with 10' or higher ceilings, or any room where deeper bass is preferred. The large 8" aluminum woofer produces deep, punchy low frequencies and the anodized aluminum tweeter...
www.htd.com
DetailsThe HDX-W80 is an exceptional in-wall speaker. Sold here as a single speaker, it is perfect for the center channel in a surround sound setup and for use in whole-house audio where only one speaker can be installed.When using a single HDX-W80 in a room for whole-house audio, you will have...
www.htd.com
For surround speakers if you can install them on side walls each side to couch then either the W65 pair or cheaper SDX:
DetailsThe SDX-W65 is an ideal pair of speakers for entry level home theaters and for use in most mid-sized rooms (150-250 square feet) as part of a whole-house audio system. The 6.5" polypropylene woofer produces warm mid and low frequencies and the aimable soft silk dome tweeter produces...
www.htd.com
You also need CL2/CL3 rated speaker wire for in-wall installation:
DetailsRun this 2-conductor cable (+ and -) to a single speaker. Speaker cable is made of individual strands of copper that are twisted together to result in the cable's thickness, or gauge. The lower the gauge, the thicker the cable, e.g. 14 gauge is thicker than 16 gauge. Generally speaking...
www.htd.com
This Yamaha model may be best pick for low budget. Refurb unit with 18month warranty. Yamaha is well known from reliability and this is the higher Aventage range. It has lot of features for future in mind if you want expand your system.
www.accessories4less.com
1000$ budget is so low that i´m not sure will you get everything right away.
325$ (smaller LCR) speakers
450$ for av-receiver
47$ speaker wire (if 100feet is enough)
Total 822$ without subwoofer so you need to bump up the budget or have to find cheaper receiver. This Denon would go 399$.
Amazon product ASIN B07QRC9NP5
If you could stretch little to get the Dayton 15" subwoofer. It has been quite popular choice to fill larger rooms. The quality is what you pay for though, but i don´t think there is anything better for such low price. In future you could add second identical if you are happy to make them work less and to give you smoother bass response.
Amazon product ASIN B00JZTQIJ4