Sounds pretty good. Generally, subs go into the corners of the room so they reflect the sound.
I think the crutchfield speakers look decent and should provide a good starting point. Add a decent receiver and a dvd / blueray player and you are all set.
Some of the guys on here are recommending a lot of fancy stuff that seems beyond your budget / needs. Like with snowmobiling, it is easy to get caught up in all the techno / performance babble and spend more and more for less and less.
As to configuration, you need a x.1 at least. The .1 is your subwoofer and provides the lows for your stereo. It is non-directional, hence the .1. At the minimum the other channels should be left front / center / right front (3.1), with the center being the most important. Other channels can be left rear and right rear (5.1) and some also even allow use of a left side and right side (7.1) in addition to the other channels.
The Classic 5.1 looks to be pretty good for a speaker system and with the price.
This one includes everything, even the bluray player.
http://www.crutchfield.com/p_305HTE6500/Samsung-HT-E6500W.html?tp=6419
Note that with Samsung system, the subwoofer is power by the amp (passive design). Therefore if you upgrade your receiver / amplifier if it does not include amplification power for a subwoofer (most don't) the sub will not be of much use.
My parents have a kit similar to the samsung. It isn't the best, but it is good enough for them, and having all in one components means it is really easy to setup / configure.
Good luck!