i don't know about ht reciever/dvd combos, but i too had very limited space and got this sytem:
denon 1602 ht reciever
panasonic rv80 dvdp
rca lx55 speakers + center (timber matched--from radio shack)
sony wega 27" tv
just the speakers and the reciever together were about $600, including digital coax cable. until i can get a good sub i'm using a pacific tech bass toaster. the rca speakers are small dipole speakers that sound good with ht & music, and have excellent imaging qualities due to the lynaeum ribbon tweeters (plus they were being cleared out at $50 each).
also check out chuckster's website for some good quick info:chuckster's ht site